SLR December 2017 by 55 North

ENDA MCSHANE Are retailers revolution ready?

MAHMOOD SALEEM

NACS 2017 review DECEMBER 2017 | ISSUE 176

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DRS DEALT MAJOR BLOW

New data reveals flaws in logic

SGF CONFERENCE Full review

SOFTWARE REVIEW

PayPoint’s EPoS Pro in the spotlight

THE BIG FISH GET EVEN BIGGER

The latest round of consolidation and collapses sees Tesco and The Co-op tighten their grip on the convenience trade.

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December 2017

Contents

Contents ISSUE 176

NEWS p4 p5 p6 p8 p10 p11 p12 p20 p22 p24

Booker a done deal Tesco-Booker gets CMA nod, while Nisa members vote in favour of Co-op takeover. P&H collapses Palmer and Harvey enters adminstration with the immediate loss of 2,500 jobs. F2G funding announced Scottish Government announces £250,000 fund to help retailers tackle food-to-go. Shopworker preotection legislation proposed Vicious attacks highlight need for tougher preotection laws. Fake robbery retailer jailed Prison for retailer who faked Post Office robbery. Staff development initiative Bolt Learning and epoints Trade team up to offer a more rewarding way of learning. News Extra The Budget Chancellor Philip Hammond gives little for local retailers to cheer about. Product News Premier’s Christmas cakes range is a mixture of new products and old favourites. Off-Trade Spar’s own-brand Prosecco is top of the pops for the Which? panel of experts. Newstrade The Scottish Newstrade Steering Group launches four new win-win initiatives for retailers.

INSIDE BUSINESS p26 Research Digest Shoppers appear keen to set their own contactless limit. p28 Cross-Party Group Meeting A statistical analysis throws the merit of the Deposit Return Scheme into doubt. p30 Licensing Minimum Unit Pricing on alcohol is unlikely to have much effect in a typical convenience store. p32 SGF Conference Review The Federation’s 99th annual conference had a packed audience and a full agenda. p34 SLR Rewards 2017 As his reward for being our Retailer of the Year, Mahmood Saleem went to NACS in Chicago. p36 SLR Rewards 2018 The most Rewarding awards in retail are back, bigger and better than ever. p38 Software Review PayPoint takes its Epos system to the next level with its Pro version. p41 ThinkSmart Update The first two speakers for SLR’s groundbreaking retail tech conference are confirmed. p43 Customer Engagement Velocity Worldwide CEO Enda McShane asks if retailers are ready for a revolution. p44 Woodlands Local The P&H collapse rounds off a month of soft sales and staff issues in SLR’s store. p46 Hotlines Our latest selection of new products that are all clamouring for shelf-space. p70 Under The Counter What do you get when you cross kale with a Brussels sprout? An irate geriatric for starters.

FEATURES p48 What’s In Store Several key industry players peer into their crystal balls and make predictions for 2018. p64 Mints and Gums With a combined value of over £400m, you can’t afford to ignore these big two hitters. p66 Iconic Brands Focusing on the brands that do the business for you day in day out is a vital strategy for making profits. www.slrmag.co.uk

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ON THE COVER p16 Industry Consolidation Local retailing has undergone a seismic shift over the last few months. What will happen when the dust finally settles?

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News CONSOLIDATION Both Tesco-Booker and Nisa-Co-op deals progress

Stoats Scotland’s 1000th Living Wage employer Scottish oats company Stoats has been accredited as a Living Wage employer and, as the 1,000th company in Scotland to do so, it received recognition of

Tesco-Booker deal gets green light

the achievement with a visit from First Minister Nicola Sturgeon. Visiting the company’s Edinburgh HQ during Living Wage week, Sturgeon met staff and congratulated the company. Stoats, founded in 2005, employs 33 people. It earned Living Wage accreditation shortly after moving to a new production facility three months ago.

Nisa’s balloon bursting comp goes with bang An interactive instant-win online competition to promote Nisa’s 40th birthday celebrations received almost 45,000 unique entries. The three-week-long campaign was viewed just under 90,000 times on social media, and an e-shot to customers saw a click rate of over 20%. Nisa said the competition, where entrants had to pop virtual balloons, had been “a huge success”.

First-timer buys Bonnyrigg paper shop Millar’s Newsagents in Bonnyrigg has changed hands. The new owner is Uzma Shahbaz, an experienced retailer of 18 years who was looking to buy her first convenience store. The business had been under the same ownership for 38 years and was placed on the market due to retirement. The sale was brokered by Christie & Co.

Bunker appointed MD for pladis UK&I Nick Bunker has been named as new Managing Director UK&I for global snacking company pladis. He replaces Jon Eggleton, who has stepped down after 14 years at the helm. Already in post, Bunker is tasked with accelerating growth across the McVitie’s, Jacob’s, go ahead! and Godiva brands. He was

The Competition and Markets Authority (CMA) has provisionally approved Tesco’s takeover of Booker. Clearance was based on the lack of overlap in the supplied catering division which accounts for 30% of Booker’s sales, and the fact that any price competition would be beneficial for consumers and wouldn’t push other players out of the market. Several rival wholesalers had expressed concern that Booker would benefit from improved suppliers’ terms after the merger, making it difficult for them to continue to compete. They argued that as a result, in the longer term, Booker might be able to raise prices to the shops that it supplies. Simon Polito, Chair of the CMA’s inquiry group, said: “Our investigation has found that existing competition is sufficiently strong in both the wholesale and retail grocery sectors to ensure that the

Booker CEO Charles Wilson (left) shakes on it with Tesco opposite number Dave Lewis merger between Tesco and Booker will not lead to higher prices or a reduced service for supermarket and convenience shoppers.” Landmark Wholesale, which had opposed the merger, condemned the CMA’s decision, saying it would destroy rather than increase competition. The CMA is now inviting further comment and evidence before coming to a final view.

Meanwhile, Nisa Members have voted three-to-one in favour of the Co-op’s offer to buy the business for up to £137.5m. Again, the deal is subject to CMA approval. Along with taking on the existing Nisa debt of £105m, the deal will give Nisa retailers access to greater scale, as well as the Co-op’s range and own-label proposition. Members will still be able to operate their stores as they wish.

BUSINESS Chris Gallacher moves on

Scotfresh seeks new boss Scotfresh is searching for a new Managing Director to lead the awardwinning group as it moves into the next phase of its development. Currently operating eight stores across Glasgow and the central belt, Scotfresh is an established player in the Scottish convenience marketplace and has bold plans for future growth. With a new strategy focusing on cold start sites, Scotfresh has been busy building up a pipeline that is due to come to fruition in the near future. Company Chairman Shaun Marwaha said: “We’ve built our reputation as one of the leading names in convenience retailing in Scotland over the last couple of years and we’re ready to take the business to the next level.

“As well as strengthening our fresh food business and developing our OOR Kitchen food-to-go concept, our management team led by current Managing Director Chris Gallacher has focused on cementing strong foundations, improving efficiencies and forging strong relationships with suppliers.

“Chris has decided to move on to a new challenge in the New Year and I would like to thank him for his contribution to Scotfresh over the last two-and-half-years. The search is now on for an ambitious, highly experienced individual to take the business to the next level and further strengthen the Scotfresh convenience brand. “We’ve created a new convenience brand with Scotfresh and shaken up the sector in the process, adopting a strategy of collaboration with our wholesaler and suppliers. “We’re under no illusion that we are operating in a competitive convenience retail sector that is going through considerable change, but our size makes us agile and allows us to adapt quickly.”

previously CEO of KP Snacks. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News WHOLESALERS Job losses in thousands as P&H runs out of options

Palmer and Harvey into administration

Drinks industry hops to it The second North Hop festival of 2017 took place over the weekend of November 11–12 at the Macdonald Aviemore resort, showcasing Scotland’s booming drinks industry. The event was hosted by STV’s Nicola McAlley

Palmer and Harvey has gone into administration after efforts to restructure the business proved unsuccessful. The UK’s largest delivered wholesaler to the convenience trade employed around 3,400 staff. There will be 2,500 immediate redundancies from P&H’s head office and across its network of 14 distribution centres. The remaining employees will assist administrators PwC in closing down the business. “The P&H Group has faced a challenging trading environment,” said Matthew Callaghan of PwC. “The company has insufficient cash resources to continue to trade beyond the short term and the directors have concluded that there is no longer any reasonable prospect of a sale. “This is a devastating blow for everyone who has been involved in the business. The administration team will focus on working with employees, clients and suppliers to facilitate a smooth and effective wind-down or transfer of operations over the next few weeks.” The company, which was Britain’s

and featured pop-up bars and product samplings from the likes of Wester Spirit Co, Spey Valley brewery, Isle of Harris Distillers, 71 Brewing, Thistly Cross and Poco Prosecco. Michelle Russell, North Hop Director, said: “The fact we are able to put on two big festivals in the same year is testament to our thriving drinks industry in Scotland and the incredible products our distillers and brewers are coming up with.”

biggest tobacco supplier, had been struggling to manage substantial debt and had recently undergone a refinancing deal with JTI and Imperial Tobacco. It had been in exclusive negotiations with private equity firm Carlyle, with a proposed buyout conditional on additional loans and funding from JTI and Imperial. However, talks collapsed after a serious cashflow problem was revealed and the company’s directors were forced to bring down the shutters. Palmer and Harvey supplied around 90,000 customers including

multiples and symbol groups like Costcutter. Its closure will have a considerable knock-on effect throughout the industry. Costcutter Group has confirmed that its 2,200 Costcutter, Mace, Simply Fresh, Supershop and kwiksave stores will be stocked exclusively by the Co-op from spring 2018. The deal also gives Costcutter’s independent retailers the chance to become Co-op franchisees. In the short term Costcutter has activated contingency plans, and is opening wholesale and cash & carry accounts for its retailers.

ALCOHOL End of the road for cheap booze

Minimum unit pricing comes to Scotland

Select & Save selects Bestway Bestway Wholesale has been awarded the contract to supply the Select & Save chain of over 100 stores. Since launching a little over two years ago, Bestway’s Multiple Account division now delivers to over 250 sites across 27 operators throughout the UK. Bestway’s Symbol Development Director James Hall said the account win demonstrated that the wholesaler was the “safest pair of hands” in the industry.

Landmark enjoys growth in coffee range Landmark Wholesale has seen growth of over 100% in sales of

The Scottish Government can go ahead with plans to introduce a minimum unit price for alcohol, following the Supreme Court’s rejection of a challenge by the Scotch Whisky Association (SWA). Holyrood passed legislation five years ago to set a minimum price for a unit of alcohol. The SWA claimed minimum unit pricing was “disproportionate under EU law”. Seven judges unanimously ruled against the SWA, saying the 2012 Act didn’t breach European law and that “minimum pricing is a proportionate means of achieving a legitimate aim”.

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The SWA accepted the Supreme Court’s ruling. It will now require further legislation to set a minimum unit price, currently proposed at 50p. Following the decision, the Scottish Retail Consortium said it wanted to work with the Government to ensure the “best system possible” for retailers and consumers was put into place, and called for clarity on implementation of the legislation. Ewan MacDonald-Russell, SRC Head of Policy and External Affairs, said: “We believe that will require both a reasonable implementation period, of at least six months,

and clear guidance so retailers understand exactly how they can effectively implement the policy.” The producer of Tennent’s Lager, C&C Group, said it was “completely aligned” with the Scottish Government and urged the drinks industry to get behind the ruling. Paul Bartlett, Group Corporate Relations Director for C&C, said: “We welcome today’s landmark decision. It is the right move to make; a progressive step forward in tackling the problems of alcohol misuse in Scotland and we congratulate the Scottish Government on its perseverance.”

its range of hot drinks since last year. The company’s Lifestyle Coffee jar is now its top selling grocery product, up over 100% year-on-year. Price-marked at £1 for an 80g jar, it forms part of the company’s hot drinks range, which also includes bestsellers such as latte, cappuccino, and hot chocolate sachets all PM £1. “We are delighted to report a continued growth on our range of hot drinks.” commented Jon Burton, Senior Trading Controller, Landmark Wholesale.

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News GRANTS Government scheme helps independent retailers

Imperial improves JPS range Imperial Tobacco has announced three enhancements to its JPS factory-made cigarette (FMC) range, launching nationwide in early 2018. First, JPS Real Blue will benefit from Imperial’s new ‘Firm Filter’ technology. A key feature much-requested by consumers, the premium-grade filter retains its shape when in use. JPS Silver also receives a filter upgrade, and becomes JPS Silver Stream. The improved cigarette features Imperial’s ‘Smooth Filter’ for “an exceptionally smooth taste experience”, and paper designed to create less smoke. Finally, JPS Green becomes JPS Green Edge, and features a menthol inner liner within the packaging that is more effective at transferring flavour to the cigarettes than traditional menthol tips. JPS Real Blue featuring Firm Filter, JPS Silver Stream and JPS Green Edge are all available from January 1 in both King Size and Superkings 20s at RSPs of £8.30.

Food-to-go funding for c-stores announced A new £250,000 capital investment programme to support small independent grocers introduce foodto-go stations within their stores has been announced by Rural Economy Secretary Fergus Ewing. The Scottish Government-backed fund will provide small grants covering 50% of the cost of re-fitting stores, new equipment and displays as part of its efforts to support small businesses. Speaking at the Scottish Grocers Federation Conference, Ewing said: “Many of our small independent and family-run convenience stores are operating in a very competitive trading environment and are having to adapt and innovate to continue to meet changing consumer behaviours. One such way of doing this is through the introduction of a food-to-go station. “Food-to-go is fast becoming a growth market for many retailers but introducing the offer comes at an additional cost which can present

Fergus Ewing a challenge to small independent grocers who are already operating on tight margins. This competitive fund will provide some much-needed support to those who want to diversify and expand their offer to consumers. It will also provide a great opportunity to further showcase the best of Scottish produce and encourage a shift towards healthier options.” Welcoming the news, SGF Chief Executive Pete Cheema said: “The Scottish Government is making an unprecedented investment in the

independent convenience store sector in Scotland. This will ensure that retailers can respond to the changing needs and expectations of customers by providing a highquality food-to-go offering with a strong focus on healthy eating.” The new programme will be administered by SGF. The Scottish Government will work with the Federation over the next few months to design criteria for the programme, which is hoped to open for applications early in 2018.

Stephen Phillips, Imperial Tobacco Brand Manager, commented: “These innovations to the JPS portfolio demonstrate how Imperial is leading the way in the tobacco category, delivering sophisticated product innovation in a post-standardised packaging environment that meets the needs of our consumers and delivers continued profitability to our retailers. “JPS is a key brand in our portfolio, with its variants currently commanding an overall FMC sector share of over 5%. We’re confident that JPS Real Blue, JPS Silver Stream and JPS Green Edge will be ‘must stocks’ in UK retailers’ gantries.”

RETAILER RESOURCES New customised leaflet tool goes live

Costcutter POS: this time it’s personal for retailers Costcutter has rolled out a new personalised POS and leaflet tool for its retailers. Successfully trialled in various stores across the UK, the new ContentHUB system allows retailers to customise their three-weekly POS kits, saving time and reducing waste in the process. By using ContentHUB, retailers can also personalise their leaflets, including adding store specific offers and competitions, to drive engagement and footfall through marketing campaigns that are truly targeted. ContentHUB is accessible via Costcutter’s ActivHub portal and is designed to help retailers declutter point of sale to create real stand out, whilst also providing another tool to drive footfall.

Used in conjunction with the data provided through the Shopper First dashboard, retailers can select and customise marketing materials that match their target local shopper personas. Michael Hooley, Costcutter’s Head of Promotional Marketing, said: “As part of the Shopper First programme, the introduction of shopper dashboards provides every store with insight into who is living nearby, enabling them to tailor their range and meet the needs of local shoppers. “ContentHUB represents the next step in this journey as it allows our retailers to now tailor their marketing messages to appeal to their local audience. We’re delighted to roll this market-leading tool out to our entire estate.”

RECYCLING

New data weakens case for DRS scheme The Cross-Party Group on Convenience Retailing has seen a comprehensive analysis of the proposed Deposit Return Scheme (DRS) that throws into doubt the merits of progressing the concept. Data from Valpak, the UK’s leading environmental compliance body, suggested that current kerbside recycling rates are far higher than the numbers cited in Zero Waste Scotland’s report that paved the way for DRS. Valpak also estimated that, based on the Danish model, that the total cost of operating and administering a DRS scheme in Scotland would be approximately £100m annually. See p28 for a full report.

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AND STILL THE NO.1 ECONOMY RYO* Celebrating a Golden Era

Happy Birthday Gold Leaf!

*ITUK Estimates June 2017

QUALITY

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BLEND

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News CRIME Legislation needed to protect staff

All over Barr the shouting Barr Community Stores has been shortlisted for the Plunkett Foundation’s Community Cooperative of the Year Award. The Ayrshire store’s Director Bridget Trafford said the shortlisting was testament to the perseverance and achievements of the community in Barr. “It also gives us the chance to investigate funding opportunities, project ideas and share experiences with other community groups,” she said. The Plunkett Foundation helps people in rural areas set up and run community co-operatives.

PayPoint grows its retail services PayPoint has released its halfyear figures for the six months ended September 30, 2017. There was growth in the company’s core Retail Networks business with gross revenue up 2.3% to £97.6m. Net revenue grew by 5.0% to £56.5m. There was a 2.7% drop in operating profit however, down to £24.4m. PayPoint’s parcels business

Attack on shopworker highlights need for tougher laws A 63-year-old female member of staff from the Catrine Convenience Store in Ayrshire was left in a critical condition after she was seriously assaulted by a man during a robbery. A 39-year-old local man was subsequently arrested and charged with attempted murder and robbery. He remains in custody. The incident came just two days after MSP Daniel Johnson announced that he intends to bring forward new legislation to protect retail from violence while at work. The member’s bill will create new offences around assault and abuse of workers who are involved in the sale of age-restricted items like alcohol and tobacco. Strongly condemning the attack, SGF Chief Executive Pete Cheema said: “This shocking incident drives home how important it is to change the way we deal with in-store violence.” Figures reveal that such attacks are increasing in number. The Retail

Crime Survey, released in February 2017, reports a 40% increase since last year of incidences of violence and abuse against retail staff. Analysis from the Scottish Retail Consortium has also revealed a rise in the number of assaults. SRC Head of Policy Ewan MacDonald-Russell said: “More needs to be done to deter and prevent this abuse. Mr Johnson’s consultation provides a welcome opportunity to revisit the legislative framework, and we will continue to work with him and others

on the right way to deal with these often terrifying incidents.” Shopworkers’ trade union leader John Hannett has called on the Government to introduce legislation. This follows an Usdaw survey which revealed that, over the last 12 months, over 60% of retail staff had been verbally abused (a rise of 25%), over 40% were threatened (up 38%) and 3% had been assaulted (a 25% increase). This to equates 265 attacks on shopworkers per day in the UK.

continued to make progress, with volumes up by 13.6% to 11.9 million. UK bill payments and top-up net revenue remained broadly flat at £32.4m. Multipay transactions doubled to 6.7 million. Group earnings per share was static at 29.1p on a year-on-year basis, with an interim dividend of 15.3p per share. There was an additional interim dividend of 12.2p per share.

Have a Nisa Christmas Nisa has kicked-off a host of special Christmas activity on its social media channels. The activity started with ‘Christmas Moments’ – a weekly prize giveaway encouraging the public to share their favourite thing about Christmas. Forthcoming is the return of Nisa’s Christmas colouring competition in association with Cadbury, the chance to win one of four family days out or a Kinder soft toy, and a competition to win a luxury

TECHNOLOGY PayPoint offers retailers their ‘store in their pocket’

TRADE ASSOCIATIONS

PayPoint launches enhanced EPoS system and mobile app

Scotmid boss Brodie to chair SRC

PayPoint has revealed the latest iteration of its EPoS proposition, EPoS Pro, along with a new mobile app which promised to let retailers run their stores from anywhere. EPoS Pro, which is reviewed in-depth on p40, resides on the PayPoint One platform and offers a complete EPoS solution, with full stock management, enhanced reporting, news management and symbol/wholesaler links, as well as the features from the current Base and EPoS Core systems. The new mobile app enables retailers to have their “store in their pocket” with access to sales and stock management functionality wherever and whenever they need. A scanning capability allows retailers

to book in stock at the cash and carry. The app will also be available for free to all PayPoint One retailers, with functionality depending on their EPoS package type. “When we launched PayPoint One last year, we committed to creating a platform that meets retailers’ current and future needs and flexes as their businesses grow,” said Dominic Taylor, Chief Executive at PayPoint. “EPoS Pro delivers on that commitment, particularly through the new mobile app which puts the retailer’s ‘store in their pocket’ and enables them to manage their store from anywhere.” PayPoint One with EPoS Pro will cost £30 a week, with no upfront hardware cost.

The Scottish Retail Consortium (SRC) has named Scotmid Chief Executive John Brodie as its next Chairman, effective January 1, 2018. Brodie will succeed Andrew Murphy, who has held the post since January 2014. He will work with SRC Director David Lonsdale and Board members to champion the retail industry and enhance its prospects for growth. David Lonsdale said: “John is an industry leader with a proven track record, and I’m sure he’ll bring those skills to support the work of the SRC in advocating on behalf of all retailers and the customers they serve.”

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W NE

Stock control from anywhere

See what youâ&#x20AC;&#x2122;re selling in real-time

Change prices and promotions instantly

Your store in your pocket Manage your store with the PayPoint One app Get PayPoint One EPoS Pro at paypoint.one or talk to your Territory Development Manager

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News CRIME Hold-up invented in wake of huge debt

SWA looks for new boss After many months of speculation and discussion, the Scottish Wholesale Association has formally begun the search for a new Chief Executive to replace long-standing boss Kate Salmon. The post has been officially advertised with a salary of £50,000. To replace Salmon, the SWA is looking for “someone with political know-how, a strong understanding of what makes the food and drink sector tick and knowledge of the key movers and shakers in the industry”. Salmon has been with the SWA for 35 years. Over the last decade she has transformed it into a household name, driving innovation in an array of directions, launching new events, building the lobbying arm and standing up for wholesalers and retailers across Scotland.

Bestway Foundation gives £100k to NSPCC

Prison term for retailer who ‘made up robbery’ A local retailer who faked a robbery from his own Post Office in February has been jailed for 34 months. Kulwinder Bagri, 53, told police two masked raiders burst into the Premier store in Clarkston, East Renfrewshire armed with a shotgun and pistol. He said they threatened to kill him before destroying CCTV footage and making off with £120,000 in cash. The story unravelled when officers reviewed footage from cameras outside the store and saw no trace of any gunmen. A subsequent search of Bagri’s house uncovered £6,000 in cash, found in a bedroom. It transpired that Bagri had launched a café venture with his wife in the east end of Glasgow. This led to a debt of £300,000 when the business flopped.

In October, he pleaded guilty in Paisley High Court to embezzling £124,843.32 and to making a false report. At his sentencing last month Bagri’s solicitor asked for leniency, but Sheriff David Pender handed down a term of 28 months for embezzlement plus another six

UNDERAGE DRINKING Number of reported incidents halves during initiative

The Bestway Foundation has donated £100,000 to the NSPCC, the UK’s foremost children’s charity. The donation took place at Bestway’s HQ in Park Royal on November 23 with Bestway Group Chief Executive Zameer Choudrey and Bestway Wholesale Chairman Younus Sheikh presenting the NSPCC’s Chief Executive Peter Wanless with a cheque for £100,000. Zameer Choudrey commented: “The NSPCC strives to change the lives of children who have been abused and offer help and support to both children and their parents. We are delighted to support such a worthy charity and hope that our donation will help their support teams reach out further, go deeper and aim higher to provide the critical support that children

Proxy purchase campaign reports 38 adults buying booze for kids The ‘You’re asking for it’ campaign in North Lanarkshire has made a big impact in tackling underage drinking. Driven by the Scottish Alcohol Industry Partnership (SAIP), Police Scotland and North Lanarkshire Community Safety Partnership, the campaign saw a surge of support from 74 retailers, as well as parents and concerned residents. Police Scotland analysts report that youth disorder incidents reduced by 10%. The campaign also contributed to a 51% reduction of reports of children drinking on the street. As well as 38 adults being reported for buying alcohol for children, the campaign also led to two stores being reported for repeatedly selling alcohol to under 18s. The results suggest children have found it harder to source alcohol because of the campaign.

John Lee, Head of Policy and Public Affairs for the Scottish Grocers Federation and Chair of the SAIP Campaigns Group, said the cooperation of retailers had been remarkable. “Licensees are enthusiastic about the campaign as it provides a structured and supportive approach in identifying and handling cases of proxy purchasing,” he said. “Reducing alcohol sales to under 18s has a significant impact on local communities, helping to improve safety, tackle crime and improve health among young people.” Several other local authorities have now expressed an interest in running ‘You’re asking for it’. SGF is also collaborating with Police Scotland’s video production unit to develop a training resource for retailers to help them tackle the issue.

months for wasting police time. The sentence would have been 51 months, but for the guilty plea. While acknowledging that Bagri came from a hardworking community and family, the Sheriff said: “There is no disposal open to the court other than a period of imprisonment.” TOBACCO

Landmark urges retailers to avoid customer crisis Landmark Wholesale is urging independent retailers to sell tobacco products at manufacturer’s RSPs or risk losing customers to the multiples and managed convenience stores. “Customers don’t want to pay more than the recommended selling price for their tobacco and will choose to walk past their local store if they are charged a premium,” said John Mills, Landmark Wholesale Managing Director. The warning came after JTI revealed independent retailers are charging on average 25p more for cigarettes and 32p for rolling tobacco than the recommended price following the law changing in April this year, when price marking was removed from tobacco packaging.

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06/12/2017 09:27:30

News STAFF DEVELOPMENT Partnership brings new approach to training

Bolt Learning and epoints Trade join forces Bolt Learning has partnered with epoints Trade to create a new way to train and share knowledge with retailers and retail staff. Bolt and epoints Trade will be working with retail groups and FMCG brands to bring greater category understanding and product knowledge to retailers, whilst also helping drive improved availability, compliance and in-store excellence. Retailers and their staff will be rewarded for completing online training modules with epoints, a digital currency. These can then be spent on a wide range of rewards. The scheme offers a flexible and personalised way to not only learn, but to reward and motivate retailers to take part. The online modules can cover topics from underage sales and food safety, through to customer service, core range and even NPD launches.

Mark Biscoe, Managing Director of epoints Trade, said: “epoints Trade is an incredibly flexible rewards programme, and this partnership shows yet another way to reward and recognise individuals and teams. By combining training with rewards, which can be quickly amassed and spent, we are sure this programme will continue to engage and motivate employees to develop their skills, for the benefit of the store, and its customers.” Retailers can also boost their epoints balance outside of the training courses. Additional epoints can be gained via other epoints Trade schemes, such as buying from a certain wholesaler, or for stocking and displaying certain products. Outside of the workplace, retailers can collect epoints via a range of everyday activities like shopping online.

Katie Jenkins, Head of Customer Proposition at Bolt Learning, commented: “Our partnership with epoints Trade is driven by a desire to help raise retail staff capability and in-store excellence. We know that many retailers and store staff are short on time but are hungry for information and knowledge to help them grow their sales, so our online training offers them another way to learn, at a time to suit them.” November was a busy month for Bolt. It partnered with ACS to develop the Assured Advice Training programme for retailers. The Paisley-based firm also picked up the 2017 ROCCO Award for Learning and Technology for its innovative use of technology. It also celebrated multiple new clients in the Convenience and Wholesale sectors including McColls, MRH and JJ Foodservice.

Pipped at the Post The Post Office in Colinton has changed hands, and is now trading as Olive Deli & Post. The new owner – experienced retailer Robert Carcary – has transformed the premises with a deli-style offering selling a wide range of products. The business was sold for an undisclosed sum from an asking price of £255,000. Specialist retail property agents Cornerstone concluded the sale.

LOTTERY Will new games be just the ticket?

Lottery revamp on cards as sales remain under pressure Camelot has revealed plans to revitalise the National Lottery in the wake of disappointing sales figures. Ticket sales of £3,280.4m for the first half of the 2017/18 financial year represented a fall of 3.2% on last year’s first-half performance. This came after a drop of 8.8% for the whole of 2016/17. The EuroMillions, Lotto and Thunderball games are to become distinct from each other, with prizes and prices to suit different needs and pockets. Camelot also plans to make improvements to Lotto in the new year, following feedback from players. There will be a Tuesday Thunderball draw, a new EuroMillions HotPicks and an annuity-style game that will give winners long-term regular payouts rather than a bumper jackpot. The game changes may indeed lead to more players, but this won’t

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necessarily translate into greater footfall for local retailers. Part of Camelot’s vision is to bring the lottery into discounters, and make play available at supermarket selfscan checkouts. Perhaps to allay concerns over these developments, a £20m investment in new retail initiatives is planned to boost levels of engagement and improve in-store display, merchandising and game availability. The sales team will also double in size, to help Camelot “forge stronger relationships with its retail partners”. There will also be investment in the Lottery’s digital offering to make playing online as easy as possible and offer players a more personalised experience, while a brand overhaul will “make The National Lottery and its purpose far more relevant and visible”.

DECEMBER 2017 | SLR

06/12/2017 09:27:30

News Extra

Budget | Living wage increase

NewsExtra HANDS-ON WITH PAYPOINT’S NEW EPOS PRO SOFTWARE P38 BUDGET Nothing to write home about from Chancellor

Convenience Matters with the SGF Illicit Trade. By its very nature it’s something hidden, underhand and harmful. As such it can be difficult to assess the impact on legitimate businesses. But we know that it’s an issue. In 2015/16, the consumption of illicit tobacco in the UK cost the Exchequer £2.4bn in lost tax revenue – the second highest single loss to the Treasury after VAT avoidance. At the operational end we know from the Scottish Anti Illicit Trade Group that a recent HMRC-led raid in Glasgow recovered 41,000 cigarettes and 7kgs of hand rolling tobacco. In Dundee a sophisticated hand rolling tobacco processing unit was uncovered during a search under warrant of a commercial unit and included machinery designed to refine coarse loose leaf tobacco into readyfor-packaging hand rolling tobacco. So from the big economic picture to the impact on the ground we can be sure that illicit trade is a problem: it is bringing crime into our communities and harming legitimate retail businesses. With these things in mind it’s very concerning that a parliamentary motion has been lodged by an MSP which says essentially that the illicit trade is simply scaremongering by ‘the industry’. This is very irresponsible – any let up in efforts to combat illicit trade will only harm legitimate businesses and put money into the hands of organised criminals. SGF is the industry-sector lead for the convenience sector on the Scottish Anti Illicit trade Group and we will engage directly with MSPs to highlight the big problems with this motion and the potential damage it could do if it leads to any let-up in the fight against illicit trade.

SLR | DECEMBER 2017

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Living wage to rise once more in a largely underwhelming budget There was little to cheer for retailers from Chancellor Philip Hammond’s budget last month with some limited tax freezes but another significant rise in the National Living Wage. THE BUDGET: FAST FACTS Q Q Q Q Q Q

National Living Wage to rise 33p to £7.83 in April Tobacco prices to rise by 2% over RPI inflation Additional 1% duty on rolling tobacco Duty on BWS frozen Planned fuel duty rise cancelled Plan to link annual rises in the business rate poundage to CPI rather than RPI brought forward by two years

Chancellor Philip Hammond’s latest budget last month provided little scope for optimism for Scotland’s local retailing community with very few positives and one very significant piece of unwelcome news: a further rise in the National Living Wage which will be hiked to £7.83 in April 2018, up 33p from its current level of £7.50. Unsurprisingly, tobacco prices are also set to rise once more with a 2% increase in duty over and above Retail Price Index (RPI) inflation annually as well as an additional 1% duty on rolling tobacco. Both increases went into effect immediately. Meeting with a more positive response from retailers was the news that Hammond has frozen duty on beers, wines and spirits, although the Scottish Government’s plans to introduce Minimum Unit Pricing on alcohol from May next year will have an impact on forcing the price of certain products upwards, most notoriously strong white cider. Fuel retailers saw some positive signs with the news that planned duty increases in both petrol and diesel duty are to be cancelled, although Hammond decided to shuffle first year vehicle excise duty rate road tax up by one band for cars that fail to meet the latest emissions standards. The Government has also chosen to bring forward by two years its plans to link annual rises in the business rate poundage to the Consumer Prices Index (CPI) rather than RPI, a move many retailers have been calling for. Responding to the Budget, Scottish Retail Consortium

Director David Lonsdale said: “Prospects for Scotland’s retailers are ultimately determined by the state of the economy and their own ability to adapt and seize on the opportunities that arise. The downgrade in predictions for economic growth, productivity and consumer spending are therefore sobering, more so as Scotland’s economy has recently underperformed the UK as a whole on these indicators. With household incomes under strain and shoppers cautious, it is imperative the Scottish Government’s own budget next month focuses relentlessly on economic growth. “Retailers will welcome the Chancellor’s decision to bring forward by two years plans to link annual rises in the business rate poundage to CPI rather than RPI, something which the retail industry has led the charge on. The switch to CPI indexation is long awaited, was endorsed by the Barclay Review, and is a step towards a more sensible and affordable rates regime. What is crucial is that Scottish Ministers follow suit, otherwise firms here in Scotland will be paying a headline business rate higher than competitors and counterparts down south from April as well as a higher large firms rates supplement. “It’s also welcome to see the Chancellor take other measures to recognise the importance of productivity and innovation in his budget. Continued investment in infrastructure is crucial for economic growth, and we hope the Scottish Government use those Barnett consequential revenues to continue to enhance both digital and transport infrastructure in Scotland.” www.slrmag.co.uk

06/12/2017 09:27:31

Introducing

INVESTING IN YOU MORE SUPPORT IS HEADING YOUR WAY

Supporting you to grow your sales…

More players are asking about The National Lottery since the ALLSTARS kit was delivered. The Retailer Guide is also really helpful – it's great to have the information we need so readily available now that more players are asking about products. The extra support of visits and phone calls is great too; it certainly is reassuring to know that we will be supported more in the future. wu Jane Edwards, Ancoats Urban Village Store, Manchester (above)

Over £4million investment in new permanent point of sale materials and signage Great tips to help you drive sales from dedicated National Lottery sales executives and telesales teams Quarterly contact from the team – oﬀering regular support and advice A new FREE retailer hotline 0800 8 40 50 60* Multi million pound advertising support for all National Lottery games

* (Calls to 0800 numbers are FREE when calling from a UK landline or mobile. Charges may apply when calling from a business line or abroad.)

SLR December 2017.indd 13

06/12/2017 09:27:31

Comment

WE ARE IN A TRULY UNPRECEDENTED PERIOD OF CHANGE Having written about the local retailing sector for around two decades, I simply cannot remember a period of change quite as intense as the one we currently find ourselves in. A decade or so ago we saw a flurry of acquisitions with several retailers that owned chains of stores like Botterills and Aberness cashing in on ridiculously high sale prices, but even that period pales in comparison to the last few months. First there was McColl’s striking a supply deal with Morrisons, then we saw Tesco and Booker getting the merger green light. Next up was Nisa members accepting a takeover by the Co-op then the Co-op confirming an exclusive supply deal with Costcutter. And now we have P&H tumbling into administration. The industry is frankly in turmoil and it’s anyone’s guess as to how it will all pan out. One of the most interesting questions will be how Tesco and the Co-op’s rapidly tightening grip of the convenience sector will affect the industry. Having spoken to many retailers, there’s little doubt that Premier and Londis retailers welcome the whole new world that will be opened up to them when they become part of the big happy Tesco family and, while I haven’t had much chance yet to talk to Costcutter retailers, it’s a fair bet that many will welcome the solidity that the backing of the Co-op will bring, although a more immediate concern is how they’ll be getting deliveries at all now that P&H is gone. As a side show, the unlikely reconciliation between the once warring Nisa and Costcutter is all but complete – and few predicted that. But with both symbol groups punting the same Co-op range, what’s to separate the two? Is a full reconciliation under a single fascia a possibility in the future? Then there’s the question of who is going to cash in on P&H’s demise. Tesco was P&H’s biggest client for tobacco but avoided dumping it as a supplier to help get its merger with Booker through the CMA process – but does P&H’s demise allow Tesco to simply start buying ‘from itself’? And there will no doubt be a feeding frenzy in process as the main symbol groups and wholesalers target disgruntled Costcutter retailers as well as any Nisa retailers unhappy with the prospect of having to answer to the Co-op. The ultimate question is whether this mass-scale consolidation will be a good thing for the industry. The answer to that, I suppose, will depend on your perspective and whether or not you’re set to gain or lose from the mergers and acquisitions merrygo-round – and even answering that question is no simple task. In the meantime, I’m off to deal with my own pressing concern of how I’m going to lay my hands on a cage of milk for Woodlands Local by tomorrow, now that P&H won’t be getting it to me.

EDITORIAL Publishing Director & Editor Antony Begley 0141 222 5380 | abegley@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com Editorial Contributor Karen Peattie

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5388 | rchaudhry@55north.com

EVENTS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers may obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail). 55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher. All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | DECEMBER 2017

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www.slrmag.co.uk

06/12/2017 09:27:34

KEEP SALES ROLLING ON. This communication is for the information of tobacco traders only. *RRP = Recommended retail price. All on shelf prices are selected by the retailer alone. **POR = Profit On Return. Margin is calculated on the stated RRP (recommended retail price). All on shelf prices are selected by the retailer alone and margin may therefore be affected by the retailerâ&#x20AC;&#x2122;s chosen selling price. Pack images are for illustration purposes only and do not represent actual packs produced by Philip Morris for retail sale which comply with legal requirements for the retail packaging of tobacco products.

Tobacco smoke contains over 70 substances known to cause cancer SLR December 2017.indd 15 PHI0299_MArlboroRYOFineCut Ad_A4_AW1.indd 1

06/12/2017 09:27:35 22/11/2017 15:24

Cover Story

Industry Consolidation

ITâ&#x20AC;&#x2122;S NOT THE END OF THE WORLD

BUT CAN WE SEE IT FROM HERE? 16

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Industry Consolidation

Cover Story

“Charles Wilson hasn’t put a foot wrong. He understands retail like no-one else and I for one have full confidence that this deal will be another masterstroke.” DENNIS WILSON, SGF PRESIDENT AND PREMIER RETAILER

s Sir Alex Ferguson famously commented: “Bloody hell!” He was talking about a game of football of course, but his reaction was roughly the same as that of the entire local retailing industry to the bombshells of the last couple of weeks. Firstly, Booker and Tesco got the green light from the CMA for their £3.7bn merger, creating in the process a £60bn behemoth, a good sight larger than the entire wholesale sector combined at around £25bn. Then, as we were still digesting that deal, 75.79% of Nisa’s members elected in favour of a £137.5m takeover bid from the Co-op to acquire the entire business. Meanwhile rumours of a deal between the Co-op and Costcutter turned out to well-founded when a deal was announced that will see the Co-op become Costcutter’s exclusive supplier from the vaguely worded start of ‘spring 2018’. And as if that wasn’t enough, P&H ignominiously slid into administration with the administrators, PwC, confirming that 2,500 jobs were to be lost with immediate effect. Cast your minds back a little to July and you can also throw Morrison’s sole supply contract for McColl’s into the mix for good measure. The world, it seems, has turned upside down – and attempting to guess where this will leave Scotland’s local retailers is a risky business.

WINNERS AND LOSERS Sorting winners from losers at this stage is equally fraught, but it’s probably safe to assume that most Booker-supplied Premier, Londis, Budgens and Family Shopper retailers are reasonably content at being reversed into the retailing juggernaut that is Tesco. The supply chain and buying power advantages they should gain access to will be mouth-watering for many retailers, but

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the move will not be without concerns too. Retailers retaining full independence and full control of their stores has always been a strong suit of Premier in particular – but will they be required to sacrifice some that right to self-determination in return for the bounty that the massively-enlarged business could facilitate for them? “There are concerns of course, but we’re viewing the move as a really positive one,” says Edinburgh Premier retailer and SGF President Dennis Williams. “The buying power of the group will be second to none and we will gain access to a raft of benefits that will help us grow our businesses. Tesco’s fresh food expertise is legendary, its supply chain is superb and it has great expertise in areas like customer engagement and offering other services like telecoms and financial services. All of that can only help Premier retailers set themselves apart. “We’ve been with Booker for 20 years and since Charles Wilson took over he hasn’t put a foot wrong. He’s made lots of decisions that looked quite odd at the time but with the benefit of hindsight we realise that he’s a man that really knows what he’s doing. He understands retail like no-one else and I for one have full confidence that this deal will be another masterstroke.” As the stream of relentlessly positive financial results show, Booker was a formidable force on its own under Wilson. A turbo-charged Booker with Tesco by its side has the potential to change the industry for good.

STAGGERING OVER THE LINE Despite significant disgruntlement on social media and in the trade press in the run up to the Co-op vote, over 75% of the 1,190 Nisa members who own the company voted to endorse the deal, although it’s worth bearing in mind that a minimum of 75% was required to get the deal over

the line – so in that sense the deal made it through by the skin of its teeth. There persist rumours of a legal challenge to the deal but those remain merely rumours for the time being. That said, the vast majority of Nisa members were clearly happy enough to back the Co-op to give them the security and solid platform they craved to build sustainable businesses for the future. As part of the deal, the Co-op agreed to take on Nisa’s not insignificant £105m debt, putting the business on a much firmer footing. The Co-op will add Nisa’s 3,200 stores to its existing portfolio of 3,800 outlets and in the process will significantly boost its purchasing power. Nisa Chairman Peter Hartley said: “We are delighted that our members have chosen in such significant numbers to vote in favour of Co-op’s offer. We as a Board are firm in our belief that a combination with the Co-op is in the best interests of Nisa’s members. The convenience store environment is changing rapidly, and is unrecognisable from that which existed when Nisa was founded more than 40 years ago. Co-op will add buying power and product range to our offering, while respecting our culture of independence.”

LONG-TERM BENEFITS Nisa clearly expects the deal to bring a mix of immediate and long-term benefits for Nisa members, not least of which are access to greater scale and the Co-op’s wide-ranging own label proposition. Members have been guaranteed that they will continue to enjoy the independence to operate their stores as they wish, and will also be able to remain part of a member-owned organisation within the growing UK convenience retail sector. The deal brings to an end an unhappy period for the business which has never

DECEMBER 2017 | SLR

06/12/2017 09:27:37

Cover Story

Industry Consolidation

“I had been a little sceptical about the Co-op offer for Nisa... but I’m now quite optimistic about the future.” HARRIS ASLAM, NISA RETAILER

truly been the same since the acrimonious split with Costcutter in 2013 when the latter chose Palmer and Harvey as its supplier; an ironic choice given the recent collapse of P&H. Nisa retailer and former Nisa Board member Harris Aslam says he “remains positive and upbeat” about the Co-op deal. “The Tesco-Booker deal made a lot of the deals that followed inevitable in some senses. There had to be some changes although not all the changes that happened were those that we might have expected. I had been a little sceptical about the Co-op offer for Nisa and I would have liked a little more detail and assurances built in, but I’m now quite optimistic about the future. “The Co-op offers us lots of opportunities and we fully intend to take advantage of them within our business. Having access to that extended range and chilled offer, as well as the own label range, will help us enhance our own offering. We have never been wholly reliant on Nisa anyway, as we have always prioritised local and regional sourcing, but we just need to focus even harder on differentiating ourselves from the competition, particularly with more and more of the market controlled by fewer and fewer businesses.”

CAUSE FOR CONCERN One area that does concern Harris, however, is the fact that in two of his seven stores the nearest competitor is a Co-op. “It hasn’t been made entirely clear how that situation will be handled,” he says. As for Costcutter, with a significant gap between now and when the new Co-op supply deal kicks in – “spring 2018” – there is a lot of work to do to keep Costcutter retailers on-side with some sort of shortterm arrangement to ensure timely, accurate store deliveries in the interim. As a customer of Costcutter myself at

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Woodlands Local, I can say that the collapse of Palmer and Harvey has had an immediate and severe impact. A text message from Costcutter on the day P&H went into administration simply stated that there would be no more Costcutter deliveries for the rest of the week, contingency plans were being drawn up, direct to store capacity was being increased and updates would be issued. A representative of the company got in touch to confirm that a short-term solution should be in place “within 48 hours” but we were left to our own devices to wrestle with the challenge of stocking our shelves with the fresh, chilled and frozen lines that they were unable to deliver. Milk and bread are clearly the two main concerns but as SLR was going to press our local Booker has agreed to meet our immediate milk needs while Graham’s Dairy has been in touch to provide a longerterm solution if required. Running alongside all of this is the intriguing sideshow which sees Costcutter finally reunited after a fashion with Nisa in the most unlikely of circumstances. A major question surely lies in how the two will differentiate themselves from one another when they are both buying from Co-op. Is an even tighter reunification ahead, and could the two ultimately be more fully merged at some point in the future? Who can tell?

FEEDING FRENZY One sure-fire upshot of all this consolidation is a feeding frenzy among the fascia, symbol and franchise groups. The flux is almost certain to lead many independent retailers to consider their options and there will be no holds barred when the big boys take the gloves off as they attempt to grow their portfolio of stores in the coming weeks and months.

There will also be a parallel feeding frenzy among the remaining wholesalers, keen for a share of the £4bn+ of sales that P&H was mopping up previously, the bulk of it tobacco. One of the most obvious questions, then, is where will Tesco now get its tobacco? Tesco was P&H’s largest single client and while on the face of it, it made no commercial sense for Tesco to continue buying from P&H when it was just about to acquire its own wholesaler, the status quo was emphatically and very publicly maintained, presumably to avoid ruffling too many feathers during the CMA investigation. Now that P&H has gone, is Tesco now free to simply cut out the middle man and use Booker? The ultimate question for our industry is whether this mass-scale consolidation will be a good thing for convenience retailing or not. The answer to that question will depend on the perspective of the retailer or wholesaler asking it, but it’s abundantly clear that a lot of water will pass under a lot of bridges before anything like a clear picture emerges. “It’s a sad, sad day for the wholesale industry and it’s also a pretty scary situation,” says Scottish Wholesale Association Executive Director Kate Salmon. “The face of the industry has changed beyond recognition in a few months. The loss of 2,500 jobs at P&H is disastrous for thousands of families across the UK and I feel for everyone who worked for what was an iconic business in our trade. “As for the future, it’s impossible to predict how this will all play out now, but one thing is for sure: this industry has demonstrated its resilience in the face of adversity time and time again, and I fully expect it to cope with this latest set of challenges. But there’s no question this is an unprecedented period in the history of wholesaling and convenience retailing.”

www.slrmag.co.uk

06/12/2017 09:27:38

100 years of SGF.pdf 1 23/11/2017 15:55:28

1918–2018

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06/12/2017 09:27:38

News

Products

Country Life gets royal seal of approval Dairy Crest has unveiled a

ProductNews

packaging makeover across its Country Life range. Block and Spreadable packs have been given a fresh look, with the brand’s logo updated. A Royal Warrant has also been added to front of pack, with a ‘Proudly British’ call out. The new look aims to modernise the brand and showcase its quality, while strengthening its heritage and provenance.

Coke turns truck into hotel for competition Coca-Cola has ramped-up its ‘Holidays Are Coming’ activity by giving consumers the chance to enjoy a sleepover in the brand’s big red Christmas truck. Entrants need to visit Laterooms.com, find a listing for the sleepover, then explain why they are the ultimate Christmas fan. The festive truck comes with fairy lights, woodland snow scene, festive fireplace and a Christmas tree. Winners will get presents, a Christmas dinner and a trip on the London Eye.

WHAT DOES 2018 HAVE IN STORE FOR THE LOCAL RETAILING SECTOR? P48 CAKES A mixture of new products and old favourites from Cadbury and Mr Kipling

Premier reveals its new Christmas cakes ranges Premier Foods has unwrapped its Cadbury Cakes and Mr Kipling festive ranges, which see a host of classic favourites returning alongside some NPD. New Cadbury Roses Cake Bars, based on the popular chocolates, is available now in Strawberry Dream and Orange Créme flavours, and will stay in market beyond December. A pack of five individually-wrapped bars has an RSP of £1.69. The Mr Kipling range has received a packaging refresh, while Iced Topped Mince Pies are also now available in a twin pack. Helen Warren-Piper, Marketing Director at Premier Foods, said: “Consumers rely on their favourite brands at Christmas time. At Premier Foods, our portfolio includes a number of

the nation’s leading brands that are central to the Christmas season. In addition to bringing back popular products that help CADBURY CAKES

retailers consistently drive sales each year, we are always looking to build on this excitement with new launches.” MR KIPLING

(PACK SIZE/RSP)

Q Roses Cakes Bars (5/£1.69) Q Rudolph Cakes (4/£2) Q Festive Cake Bars (5/£1) Q Flake Cakes (5/£2) Q Mini Yule Logs (5/£2) Q All I want for Xmas (9/£3) Q Yule Log (1/£2) Q Swiss Gateau (1/£2.39)

Q Merry Mince Pies (6/£1.99) Q Iced Topped Mince Pies (6/£1.99) Q Winter Whirls (6/£1) Q Ginger Whirls (6/£1) Q Frosty Fancies (8/£1) Q Festive Bakewells (6/£1) Q Stollen Slices (6/£2.29) Q Christmas Slices (6/£2.29) Q Elf Slices (6/£1)

SNACK BARS

Nature Valley replays ‘Battle of the Sexes’ Nature Valley continued its tennis association by recreating the 1973 grudge match between Billie Jean King and Bobby Riggs as part of a movie tie-in. Brand ambassador and British women’s #1 Johanna Konta took on 1987 Wimbledon men’s champion and ATP legend Pat Cash. Konta won the light-hearted match 6–3.

KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | DECEMBER 2017

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06/12/2017 09:27:41

Products

News

Irn-Bru sponsors Carnival Irn-Bru will again be sponsoring Carnival, Europe’s largest indoor funfair, held at the SECC in Glasgow over the festive season. Shoppers will have the chance

FOOD ON THE GO Limited edition sandwiches benefit Marie Curie

Spar’s fundraising festive sandwiches

to win tickets to the event with

Spar is raising funds for Marie Curie this Christmas, with the launch of a limited-edition festive sandwich range. Last year’s Turkey Feast sandwich (£3 PMP) – packed with turkey, stuffing and cranberry sauce – returns alongside a new vegetarian option, Wensleydale and Spiced Carrot Chutney (£3.30 PMP). Ten pence from the sale of each of sandwich will go to Spar’s chosen national charity, Marie Curie. Marketing support for the range includes social media, online activity and in-store POS. Olivia Basten, Spar Senior Brand Manager, said: “We are delighted to be supporting Marie Curie who, like Spar, are there for everyone in the community. Sales of our new festive sandwich range are a great way to raise funds at this time of year.

Scottish consumers,” said Adrian

“We hope that in raising money for Marie Curie this Christmas, we can help make a difference to people affected by a terminal illness.” Marie Curie Partnerships Manager, Helen Stock, added: “Marie Curie is delighted that this year every sale of Spar’s excellent Christmas sandwiches will mean money raised to pay for the care that our nurses provide. That warm glow of having made a difference should make us feel all the more Christmassy!” The festive sandwiches are available in selected Spar stores until January 1, 2018.

CRISPS

Walkers retains classic ﬂavours It will come as no surprise to learn that Walkers won’t be replacing three core flavours following its ‘Choose me or lose me’ campaign. The activity saw Walkers’ favourite flavours face up to overseas contenders in a poll decided by in-store purchases and online voting. Salt & Vinegar was pitted against Australia’s Lime & Black Pepper, Prawn Cocktail rivalled Spain’s Paprika, and Smoky Bacon stood up to USA’s Bacon & Cheddar. Consumers cast over 770,000 votes. With a 19% uplift in their value sales, none of the three core flavours was usurped. Lisa Nash, Walkers Senior Marketing Manager, at PepsiCo, commented: “We are thrilled to see how the campaign truly captured the imagination of the public and how passionate consumers were about keeping their favourite flavours, especially through commenting on what losing their favourite flavour would mean to them via social media.” The campaign ran across single, PMP, grab bag and multipack formats and was supported by television advertising as well as PR, digital, social media and in-store activity.

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promotional 330ml x 24 pack cans and 750ml glass £1 PMP bottles of Irn-Bru, Irn-Bru Xtra and Irn-Bru Sugar Free variants. “Carnival has become an integral part of Christmas for Troy, AG Barr Marketing Director.

Nestlé commits to better water stewardship Nestlé Waters will certify that 20 of its factories are using water in a responible, sustainable fashion by 2020, including its site at Buxton, Derbyshire. The company already has four certified bottling facilities: three in the US and one in Sheikhupura, Pakistan. Sites have to meet 30 core criteria laid out by the Alliance for Water Stewardship and have them independently verified before gaining certification.

BOTTLED WATER

Find your Force with Volvic Volvic has joined forces with Star Wars: The Last Jedi, ahead of the sci-fi film’s December 15 release. New label designs feature Star Wars characters and words to express inner strength, helping consumers to ‘Find Their Force’. A new five-strong collectable range of glow-in-the-dark mascot bottles is also available. The new glow-in-the-dark line-up replaces the current Disney Volvic range, which includes Frozen and Star Wars characters. The fresh label design features across Volvic’s plain water range. To raise consumer awareness of the product launch, Volvic is supporting the initiative with TV, out-of-home and digital activity.

DECEMBER 2017 | SLR

06/12/2017 09:27:42

News

Off-Trade

Success comes in cans for craft beer Sales of craft beer in cans rose

Off-TradeNews

by 327% from January to August 2017, according to new research by Neilsen. The upsurge means that cans now account for over a quarter of craft beer sales in the UK off-trade. Part of this rise in popularity can be attributed to consumers’ changing attitudes. Consumers,

CHEW OVER THE LATEST TRENDS IN MINTS AND GUMS P64 WINE Consumer award for own-brand fizz

Spar Prosecco gets Which? judges’ corks popping Spar Brand’s very own Prosecco Valdobbadene DOCG has received a November 2017 Best Buy award from consumer champion Which?, after achieving a score of 78% in a blind taste test. Launched in April this year, the fizz has a “pleasant balance” and “meaty, savoury style”, according to the Which? experts. Sourced from an award-

particularly millennials, are increasingly looking for packaging that is lightweight, easily recyclable and keeps the product in perfect condition.

High Commissioner launches Heritage Edition Premium blended Scotch whisky High Commissioner has unveiled a new limited-edition design to celebrate the brand’s heritage.

winning producer in the Veneto region of Italy, the Valdobbiadene is a premium bottle to compete with the very best sparkling wines in the market, said Spar’s Senior Brand Manager, Amrit Rebello. “We want to offer our shoppers the best quality products in the market and our Valdobbiadene Prosecco brings a greater choice of tasty fizz, at excellent value,” she concluded.

A new label showcases the year and location in which High

BEER

Commissioner was

Guinness celebrates iconic designer

founded.

Guinness has launched two limited-edition can designs to celebrate John Gilroy, the artist behind some of the brand’s most famous advertisements. Cans featuring his ‘flying toucan’ and ‘lobster’ designs are available across the off-trade now in 4-, 10-, 12- and 15-packs, priced at £5, £12, £13 and £15 respectively.

High Commissioner Heritage Edition has an RSP of £13.99. The limited run of 100,000 bottles is available exclusively from selected Best One, Premier, KeyStore, Nisa, Costcutter, Iceland and Day-Today stores.

Stewart Brewing bolsters retail team

UK wine pricing uncovered Despite the Chancellor freezing duty on wine, spirits, beer and cider, over half the price of a £5 bottle of wine is tax and just 37p pays for the wine itself. This infographic from wine supplier Bibendum breaks down what makes up the cost of a bottle. It reveals that customers who spend a few pounds more, get a lot more for their money.

Scottish craft brewer, Stewart Brewing, has created two major new roles within its retail and marketing team with the appointment of a Retail Operations Director and Retail & Events Director. Ross Dunbar joins as Retail Operations Director and will be responsible for all aspects of the retail side of the business. Jakub Kebisek fills the position of Retail & Events Marketing Director. His responsibilities include planning four key events at the brewery per year, including MayFest 2018, as well as

All ﬁgures are indicative, based on a “typical” bottle of wine and do not include CCT. In reality, margins, packaging and logistics differ depending on the businesses and products involved, but the overall picture will still be the same. *Average price for a bottle of wine in the UK.

exclusive tasting events and beer launches. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | DECEMBER 2017

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Off-Trade

News

SPIRITS Whisky producer takes a light-hearted look at Glasgow and Edinburgh

Whyte & Mackay stays smooth Whyte & Mackay has launched the 2017 phase of its Stay Smooth campaign, featuring the images of award-winning Scottish photographer, David Boni. Stay Smooth’s latest instalment takes a wry and witty look at the real folk of both Glasgow and Edinburgh that have helped shape the brand’s taste and character. A series of posters and a coffee-table magazine have been created, appearing on streets and in bars across both cities, showcasing Boni’s pictures of a selection of quirky locals. The campaign also sees a number of giant static mirrors located in selected bars and prime outdoor street spots in each city, reminding Glasgow and Edinburgh folk to ‘Stay Smooth’ as they catch a glimpse of their own reflection. Ruairi Perry, Head of Blended Whisky Brands at Whyte & Mackay, said: “The Stay Smooth campaign takes a light-hearted look at the city folk who have helped shape Whyte & Mackay’s surprisingly smooth blended Scotch whisky.

SPIRITS

Backwards Becks drinks responsibly Diageo has released ‘Leave as You Arrived’, a new film from Haig Club as part the brand’s commitment to responsible drinking. The film features Haig Club business partner David Beckham, and plays out in reverse – the end is in fact the beginning, and shows Beckham and his friends as immaculately put together leaving the bar as when they arrived. The film rolled out globally across Diageo’s social media channels.

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BEER

Morgenrot launches Cisk cans Beer and wine importer Morgenrot has launched Maltese beer Cisk in 33cl cans. This follows a successful roll-out of the award-winning brew in bottles at the start of the year. Cisk (ABV 4.2%) is described as “a golden coloured, well-balanced lager with a distinctive, highly refreshing flavour profile” which offers “a rich hop aroma and pleasant bitterness”. John Critchley, Commercial Director at Morgenrot, said: “The beer ticks all the boxes when it comes to a quality, thirst quenching lager.”

I plan to have a few Christmas carollers singing in my shop. Do I need any additional permissions? I don’t have a premises licence for selling alcohol. Potentially. The council has the power to licence “public entertainment”. In doing so they will publish a Resolution setting out how they define public entertainment. A number of councils do require that you require a temporary public entertainment licence if you have an exhibition that is open to the public. This means that you will have to submit an application well in advance of the performance and pay a fee. You should contact your council’s licensing department or alternatively a specialist licensing lawyer for further information. I see that Minimum Unit Pricing is being introduced in Scotland. What does this mean for my shop? As of May 2018 a mandatory condition will be attached to your premises licence stating that alcohol must not be sold below its minimum price. This price is arrived at by the following calculation: the minimum price per unit x the strength of the alcohol x the volume of the alcohol in litres x 100. The minimum price per unit is still to be finalised. It is suggested that it will most likely to be in the region of 50/60p. Once introduced selling alcohol below the minimum price will be a breach of the premises licence and therefore a criminal offence and could lead to your licence being reviewed. We are stocking a new ice cream brand and the names of the various flavours refer to types of alcohol. As it is ice cream I can’t really stock these in the designated alcohol display area. Is this a problem? No, the ice cream does not need to be placed to the alcohol area. This is because it is a non-alcoholic product, i.e. there is no alcohol content, and whilst it is branded with the name of an alcoholic product it is exempt from being classed as “promotional” because it is for sale in its own right.

DECEMBER 2017 | SLR

06/12/2017 09:27:44

News

Newstrade

News& Magazines BRANDS YOUR CUSTOMERS CAN’T LIVE WITHOUT P66 STEERING GROUP Latest series of category-expanding initiatives launched in-store

Scottish Newstrade Steering Group moves into top gear

With a clear focus on action in-store, the Scottish Newstrade Steering Group (SNSG) has begun to move into top gear with several new initiatives to drive excitement back into the news category and deliver sales and profit growth for the Scottish trade. Building on last month’s major launch of Sun Savers, the richest loyalty scheme of its kind in the UK, the SNSG has kicked off four new win-win initiatives this month. 1. Footy fun The first sees a programme of in-store activity offering customers a free football for simply buying five copies of The Scottish Sun. All customers must do is collect a stamp on their footy-themed loy-alty card and when they reach five they collect a great quality Mitre football. It’s as simple as that! 2. Rugby rollout A second, similar, initiative will see over

2,000 high quality rugby balls being offered to customers through SNSG and participating stores as part of a tactical programme of activity. These will be of-fered both as individual incentives to customers for buying newspapers and as larger scale dona-tions to local rugby teams. 3. Free coffee The third piece of activity will see participating retailers offering customers a free cup of coffee every time they buy a copy of The Times. Retailers are being provided with free Times-branded cups and a contribution towards the cost of the coffee beans to ensure the initiative is as popular with retailers as it is sure to be with customers. The branded cups will also carry a ‘call to action’ encouraging customers to subscribe to The Times – and retailers

will also be rewarded for every subscription they facilitate. 4. Stand to attention Also in the pipeline is the production of a set of tailor-made Free-Standing Display Units (FSDUs) for SNSG members and participating retailers that will allow them to display copies of The Scottish Sun, copies of their local newspaper and promotional stock all on the one store-branded unit. The metal unit has been created specifically for the project and will help drive sales of both the news category and the promotional products featured on the unit. These will rotate monthly. If you would like to get involved in the Group, please contact Antony. His email address is: abegley@55north.com

INDUSTRY BODIES

NFRN boss Baxter steps down The NFRN has unexpectedly announced that Paul Baxter will no longer be performing his duties as NFRN Chief Executive. NFRN National President Linda Sood and the National Executive will lead the management of the NFRN in the interim. The NFRN declined to comment further, but it is understood that Baxter is now on a nine-month period of garden leave. He has been in post since 2011, and joined the NFRN after a string of retail management roles.

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SLR | DECEMBER 2017

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Retailer Competition | Newstrade

News

FANCY GETTING IN ON THE FOOTBALL GIVEAWAY RETAILER COMPETITION

SLR has linked up with News Scotland once more to offer 25 SLR readers the chance to get in on the footy action with a fantastic giveaway competition. The first 25 retailers to email growsales@news.co.uk with the subject line ‘SLR football giveaway’ and their contact details will win a bag of balls to offer to their Scottish Sun customers as part of the nationwide football giveaway promotion. What’s more, the Scottish Sun field sales team will even visit your store to set the promotion up for you – so all you have to do is get in touch. After that, your customers will collect a stamp on their special footy loyalty card every time they buy a copy of the Scottish Sun and when they reach five stamps, they receive a top-quality Mitre football. Couldn’t be easier. For your chance to score a winner with The Scottish Sun simply email growsales@news.co.uk

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Inside Business

Research Digest

80% OF SHOPWORKERS DEMAND MORE PROTECTION, FINDS UNION SURVEY Shopworkers’ trade union leader John Hannett has joined with the overwhelming majority of shopworkers who are calling on the Government to introduce legislation to provide an additional penalty for those who assault workers in the course of their duties. The Usdaw boss was speaking during the union’s annual Respect for Shopworkers Week, November 13–19, which was launched with shocking statistics revealing a big jump in incidents of violence threats and abuse against shopworkers. Hannett said: “It is entirely unacceptable that shopworkers encounter violence, threats and abuse for simply doing their job and our survey reveals that 80% of shopworkers feel they need more protection. “The interim results of our annual survey have shown that such incidents have significantly increased this year, so it entirely reasonable that shopworkers continue to ask the Government for greater protection. “Very worryingly our survey also found that one in five shopworkers who had been assaulted didn’t report the incident to their employer. “My message to shopworkers is do not suffer in silence, abuse is not a part of the job and if they report it we can help to sort it. “Sometimes retail staff feel reporting an incident won’t make any difference, so stiffer sentences for those who assault workers, backed up by properly funded police forces would give staff more confidence and be a strong response to a growing problem. “Often, in the course of their duties, shopworkers are expected to enforce the law, whether that is preventing underage purchases of products like alcohol, knives and acid, refusing to sell alcohol to drunk customers or detaining shoplifters. Parliament has given shopworkers the duty to enforce the law, so Parliament should provide the necessary protection. “I have been shocked by the leniency of some of the sentences for assault of workers. Around 265 shopworkers are assaulted every day and it is time to say enough is enough. We must give a clear message that assaulting workers who are serving the public is totally unacceptable.” The news follows the launch of a new campaign by Daniel Johnson MSP, supported by the Scottish Grocers’ Federation to attempt to create new legislation at the Scottish Parliament giving far greater protection to Scottish shopworkers. 26

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SHOPPERS ‘KEEN TO SET THEIR OWN CONTACTLESS CARD LIMIT Nearly half (48%) of shoppers would like to customise their contactless card transaction limit, or would like to have the ability to do so, according to new research among over 1,000 people during October by card machine provider Paymentsense. For shoppers wanting a customisable limit, over a quarter (26%) would immediately raise it, but nearly one in five people (18%) would lower it. The top reason for those wanting to raise the limit is that £30 is too low (44%). For shoppers keen to lower the limit (20% of those surveyed), the main reason was concern over fraud or theft (53%). A further 23% of shoppers want to lower the limit to help manage fluctuating finances. When it comes to Christmas shopping, the study also revealed divisions between higher and lower income households. On average,

over one-third (38%) of those on a lower household income (up to £30,000) would not raise the £30 limit over Christmas, fearing overspending on presents and food and drink. In contrast, only 12% of respondents with a higher household income (over £50,000) share this worry. In fact, two-thirds (67%) of shoppers from wealthier households would increase the limit pre-Christmas. The main reasons are increased spending (29%), saving time (21%) and preferring not to carry cash due to worries about being pickpocketed or losing their wallet (17%). Guy Moreve, Head of Marketing at Paymentsense said: “Contactless card payment is fast becoming the norm, with 80% of those we surveyed owning one. Shoppers now expect to use them almost everywhere – both in a traditional or contactless manner.”

SMARTPHONE ‘MOST LIFECHANGING TECH’ OF PAST 25 YEARS The launch of the smartphone and wider “connectivity” SHELF LIFE OF TECH: are seen as the most significant technology breakthroughs 50% of people no longer own during the past 25 years, according to a new survey by groundbreaking gadgets of the telecommunications company TSI. 1990s – such as floppy discs, The survey asked people to share their views on what pagers, 35mm cameras and tech has made the biggest impact since the 1990s, how videocassette recorders. it is used, and what the future holds. An overwhelming Driverless cars, robots and 60% said the smartphone – which debuted in 1992 as the artificial intelligence set to “Simon Personal Communicator” – has had the biggest become the norm by 2050. impact. And a staggering 90% use the internet in all its 61 days spent each year on forms for more than four hours every day, which equates “the net”. to 1,460 hours or 61 days every year. The most common piece of old technology that we still have in the UK, hoarded away is a corded mouse with a track ball, with one in four saying they still had, or used, one. The humble floppy disk and fax machine still appear with 9% and 3% per cent representation, but the pager – once seen on the hip of many a yuppie – appears to be extinct. The survey results revealed robots, artificial intelligence and driverless cars are predicted to become the norm over the next 25 years. The survey also looked at business trends, as advancements in technology allow us to work more remotely and spend less time travelling. It was found that over half the working population (58%) spend seven hours or more every week travelling for business. This means we’re losing 354 hours or 15 days per year, and wasting 713 days of our life on travelling, including the dreaded commute. www.slrmag.co.uk

06/12/2017 09:27:46

Research Digest

SCOTTISH SALES FALL DESPITE HIGHEST FOOD GROWTH IN FOUR YEARS In October, Scottish sales decreased by 1.0% on a like-for-like basis compared to October 2016, when they had increased by 0.6%, according to the latest SRCKPMG Scottish Retail Sales Monitor. Total sales in Scotland declined by 0.8% compared with October 2016, when they had declined by 0.2%. This is a worse performance than the threemonth and 12-month averages of +0.5% and -0.3% respectively. Adjusted for deflation measured at 0.1% by the BRCNielsen Shop Price Index (SPI), October sales actually declined by 0.6%. Total Food sales in October increased 4.9% versus October 2016, when they had increased by 0.3%. This makes the 12-month average growth 3.1%, the highest since October 2011.

“Hallowe’en wasn’t enough to stave off hard times and overall, even continued strong food sales weren’t enough to rescue October’s figures, with overall Scottish retail sales dipping in real terms by 0.6%,” said Ewan MacDonald-Russell, Head of Policy and External Affairs at the Scottish Retail Consortium. “There is much which Ministers need to pay close attention to ahead of the Scottish Budget next month. It’s clear consumers are feeling concerned about the economy, and mooted income tax rises can’t be helping consumer confidence. That’s why our members believe the Scottish Government should put growing the economy at the heart of their Budget.”

Buying or selling a retail business? If you’re buying or selling a retail-based business, it’s vital that you have a reliable and accurate stock valuation for the business. Whether it’s a convenience store, newsagent, petrol station, sports shop, card shop or retail store, we’ll ensure that your business sales are supported with the professional and accurate stock valuation you need. Our business sale and transfer valuation services include a thorough date check of all stock and margins agreed to maximise gross profit. We’ll agree the correct discounts to be used with all the parties to ensure a reliable and undisputed count, with detailed valuations and certificates produced on the day of the count for immediate use. We conduct business sale stock valuation for businesses across the UK including some of the biggest and best names in retail like Costcutters, Day-Today, Best-One, Londis, Lifestyle Convenience Stores, Mace, Premier, Best-In, Shop Smart, independent Spar stores and Keystores. Whatever your business schedule, we can support it. Stock counts can be carried out to meet whatever time scales you need to follow, including short-notice valuations.

R O TF S UN R O BE SC EM ! DI M W % F NO 10 SG www.slrmag.co.uk

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Inside Business

SOFT DRINKS SALES TO SOAR AT EXPENSE OF ALCOHOL? New research from Britvic reveals that almost half of consumers (45%) are set to buy more soft drinks at Christmas as figures show that over a fifth (21%) plan to drink less alcohol. With 37% also planning to spend more on soft drinks at Christmas than previous years, increasing to over half (56%) of consumers aged 16–24, seasonal soft drinks sales are set to soar this Christmas and Britvic is advising retailers to be prepared and stock up now. The research, conducted by Censuswide UK, also indicates that of those consumers planning to reduce their alcohol consumption this Christmas, 39% now drink less alcohol all year round, increasing to 41% in those aged 2534 and to 46% in those aged 55+.

SURVEY SHOWS INCREASING PUBLIC CONCERN OVER DIET Food Standards Scotland has published the latest results from the biannual ‘Food in Scotland’ Consumer Tracking Survey, showing the number of people concerned about having a healthy diet is increasing. Of the 1,000 respondents in Scotland, 65% are concerned about having an unhealthy diet – a rise of 15% since December 2015 when Food Standards Scotland began measuring knowledge, attitudes and behaviours towards food in Scotland.

Stocktaking:

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stocktaking services to convenience stores, retail stores and petrol stations throughout Scotland and the North of England, with a close eye, always, on maximising your profits. Over 40 years of experience ensures that we deliver a full range of stock counts, data based counts and EPOS stock file updates with a high level of accuracy, to your time-scale. We understand the long hours that you open, and your need to always be available for customers as a vital local business which means you need a stock take completed quickly and efficiently, at a time that suits you and your customers. That’s where we can help. Our many years of experience allows us to carry out your stock take quickly and efficiently, causing minimum disruption to your business, your staff, and importantly your customers.

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We count ... so you don’t have to.

DECEMBER 2017 | SLR

06/12/2017 09:27:47

Inside Business

Cross-Party Group Meeting

NEW DRS DATA REVEALS FUNDAMENTAL FLAWS The latest meeting of the Cross-Party Group on Convenience Retailing heard a damning statistical analysis of the forthcoming Deposit Return Scheme in Scotland and throws into doubt the merits of progressing the concept. BY ANTONY BEGLEY

he Scottish Government’s proposed Deposit Return Scheme (DRS) has been the source of much anger and frustration in recent times with very little in the way of robust, reliable data being presented to frame the debate. That changed dramatically last month at the latest meeting of the Cross-Party Group on Convenience Retailing at Holyrood with a comprehensive analysis of the scheme and its likely effects and costs carried out by an organisation with more access to reliable data than any other. The much-anticipated meeting of the CPG set DRS as its main agenda item and the attendant group of retailers, wholesalers and other influencers, as well as nine MSPs, heard new data that appears to throw blinding light on the merits or otherwise of a DRS project as outlined by the Scottish Government. The data was presented by Andrew McCaffery, Director of Consulting at Valpak, the UK’s leading environmental compliance body. Valpak is the body charged with monitoring packaging compliance of many of the UK’s largest retailers including three of the Big Four supermarkets. In essence, these retailers – as well as around 100 others – subcontract their environmental compliance work to Valpak which gives Valpak to a massive database of real-time information, held within the organisation’s Environmental Packaging Information Centre (EPIC). Some 30,000 suppliers provide information on precisely what they sell to these retailers on a quarterly basis which is collected and stored in the EPIC database. That database currently extends to around 16 million product lines with around two million individual SKUs live in any given year. As part of its work, Valpak literally weigh (or have weighed) every single SKU and split it down by material (which polymers of plastic it is made of, for instance) and by format (is it a 28

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Cross-Party Group Meeting

“Based on the Danish model, Valpak calculates that the total cost of operating and administering a DRS scheme in Scotland would be approximately £100m.” “To all intents and purposes, DRS is a solution to a problem that doesn’t exist.”

Inside Business

bottle, a lid, a sleeve and so on). In 2016 alone, Valpak added over four million new product lines to EPIC and 42 million lines of new sales data. EPIC covers 56% of the entire UK grocery market, making it uniquely robust. The company’s access to such an accurate, reliable and large-scale dataset is thus exceptional, so McCaffery’s presentation held the room in rapt silence, even the NFRN members who were in attendance, having previously publicly committed to DRS. While SGF had long disputed Zero Waste Scotland’s (ZWS) figures regarding how much is currently recycled in Scotland, reliable figures were difficult to come by. McCaffery soon provided them. According to Valpak’s detailed and hugely well-informed analysis, recycling rates in Scotland currently stand at the following levels: Q Plastic drinks bottles: 74% Q Glass drinks bottles: 70% Q Aluminium and steel cans: 70%

JOHN LEE, SGF

“The Danish DRS scheme has average collection costs almost 10 times higher than kerbside recycling.”

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In other words, Valpak’s findings show clearly that the current effective levels of recycling driven predominantly by kerbside recycling are far, far higher than the numbers cited by ZWS in their Deposit Return Evidence Summary published in June 2017. ZWS’s “preferred estimates for recycling rates for specific container types in a notional year of 2013/14” included plastic drinks bottles at between 47% and 52% and aluminium drinks cans at between 40% and 60%. Valpak have also calculated that even if DRS did help drive recycling rates to 90%, that would only result in an overall improvement in the recycling rate of 3%. SGF Head of Policy and Public Affairs John Lee made it clear that SGF did not feel that the disruption caused to the entire industry was merited by such a small potential increase and suggested that a more effective and cost-efficient solution should be found. He said: “To all intents and purposes, DRS is a solution to a problem that doesn’t exist.” McCaffery also warned about the dangers of “over-focusing” on plastic recycling as over 90% of everything currently recycled in Scotland is currently plastic. There were, he intimated, only marginal gains to be made on continuing to focus on plastic. The Valpak figures also throw a sobering light on the cost of implementing a DRS programme, using the oft-quoted Danish DRS initiative as a case study. Denmark has a broadly similar population to Scotland, although Scotland does consume almost twice as many products in recyclable packaging. Using a complex but robust methodology, Valpak has calculated that the average current collection cost of the kerbside recycling scheme in Scotland is around £60 per tonne, giving a total collection cost per year of around £8.2m. The Danish DRS scheme has average collection costs of £566 per tonne, giving a total collection of cost of £76.9m, almost 10 times higher than kerbside recycling. Based on the Danish model, Valpak calculates that the total cost of operating and administering a DRS scheme in Scotland would be approximately £100m based on the cost of materials (at £23m), producer fees (£47m) and unredeemed deposits at a 90% recycling rate (£30m). While McCaffery made it clear that he was at the CPG merely to present the cold data and not subjective opinions on the merits of a DRS scheme, he did add on a personal note that he viewed DRS as “a 1990s solution” to a very modern challenge. The weight of this data cannot be over-estimated and appears to be the most robust and reliable data presented so far. The question now is how, or even whether, the Scottish Government chooses to deal with it as it builds its model for how a DRS scheme would work in Scotland. DECEMBER 2017 | SLR

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Inside Business

Licensing

MINIMUM PRICING: WHAT WILL IT MEAN FOR YOU? The news that Scotland is to see Minimum Unit Pricing on alcohol introduced in May next year caused much uproar, but the reality is that the new rules are unlikely to have much effect in a typical convenience store. BY ANTONY BEGLEY

he news that the Scottish Government has decided to proceed with its plans for Minimum Unit Pricing (MUP) for alcohol took no-one by surprise but the meltdown on social media that followed the announcement suggested that the plans were not well understood by retailers. A five-year delay caused by a legal challenge by the Scotch Whisky Association allowed plenty of time for scaremongering and misinformation to take hold and muddy the waters of what is at heart a relatively straightforward proposal – and, surprisingly for many, one that is set to have very little real impact in convenience stores in Scotland. The new rules will see a set minimum price imposed per unit of alcohol and all retailers will be legally obliged to adhere to that minimum pricing. The plans will come into effect on May 1, 2018 and have been introduced by Health Secretary Shona Robison to tackle the “devastation” caused by cheap, high-strength alcohol.

LOGIC The logic behind making strong alcohol expensive as a means of reducing harmful alcohol consumption is debatable at best. Surely it would make more sense to tackle the root causes of why so many Scots drink to excess? But that would be a daunting task that would take generations to achieve and would have to deal with deeply ingrained societal problems. The Scottish Government’s answer once more seems, instead, to be simply a clunky but quick mechanic of restricting access. Somewhat bizarrely, Robison cited research 30

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which she said had shown that a minimum unit price of 50p would cut alcohol-related deaths by 392 and hospital admissions by 8,254 over the first five years of the policy. Putting this wider debate to one side, however, the bones of the new legislation are pretty simple, as Stephen McGowan, Head of Licensing at TLT, tells SLR: “The consultation to consider setting the minimum price was launched on December 1 and runs to January 26 so there is still time for retailers to have their say, if they wish. “All of the discussion to date has been about setting the minimum price at 50p per unit but there have been calls to set it higher, at say 60p. Whatever the price is, it will go live on May 1, 2018.” Scottish Liberal Democrat leader Willie Rennie is among those to have called for a 60p minimum price, which he said would reflect the impact of inflation and other factors over the past five years. On broad terms, at 50p-per-unit the minimum price of a bottle of wine (9.4 units) would need to be £4.69, a four-pack of 500ml cans of 4% lager (8 units) would need to cost at least £4 and a 70cl bottle of whisky (28 units of alcohol) could not be sold for less than £14. The effect in c-stores on these products would thus be minimal or non-existent.

“It will be a criminal offence to sell alcohol below the minimum price. Retailers need to make sure every single one of their products is priced correctly before May 1, 2018.”

SUPER-STRENGTH But it’s in the super-strength beers and cider

categories that differences will be felt. Normal strength cider (5% ABV) would cost at least £2.50 a litre but a super-strength version (7.5% ABV) would have to cost a minimum of £3.75 for a litre. That makes a 3l bottle of white cider an eye-watering £11.25. Any additional money raised by the increase in pricing will be kept by the retailer. In terms of how the new rules will fit into the existing licensing framework, McGowan says this is another straightforward task for retailers: “Minimum pricing will become a condition of your licence so it will be a criminal offence to sell alcohol below the minimum price. Retailers will simply need to make sure every single one of their products is priced correctly before the go live date of May 1, 2018.”

COMPLIANCE The new rules will be policed by Licensing Standards Officers (LSO) and McGowan expects LSOs to hit the road immediately after implementation to check compliance in convenience stores. “I understand a number of LSOs in certain areas will be looking to conduct roadshows to provide licence holders with guidance, which is to be welcomed,” he adds. www.slrmag.co.uk

06/12/2017 09:27:50

Licensing

It also shouldn’t be overlooked that MUP is not set in stone for all time, as McGowan explains: “Minimum pricing is effectively a six-year grand experiment. After five years the Scottish Ministers have to report back to the Parliament on what effect it has had and part of this is to specifically take the views of the licensed trade as to how it has affected their business. As a result of that report, on the sixth year they can bin it, or make it permanent.”

Inside Business

HOW MUCH WILL ALCOHOL COST NEXT MAY?

FURTHER CHANGES There is also the strong likelihood that minimum pricing may just be the start of further health-related changes to licensing laws. “In the last week we have had calls for bans on caffeinated alcohol products and bans on advertising alcohol such as in shop windows near schools,” says McGowan. As McGowan highlighted, the consultation is now taking place and Robison is encouraging the industry to contribute its thoughts. She said: “I anticipate setting the minimum unit price at 50p per unit. We now want to hear from retailers, representative bodies and Licensing Standards Officers about the practicalities of implementation.”

£14.00

£13.13

£1.00

£4.69

Vodka

Lager

Wine

Whisky (70cl / 40% ABV)

(70cl / 37.5% ABV) (500ml / 4% ABV) (75cl / 12.5% ABV)

IMPLEMENTATION And it’s the practicalities of implementation that interest Ewan MacDona ld-Russell, Head of Policy and External Affairs at the Scottish Retail Consortium: “The debate over the legality of Minimum Unit Pricing of Alcohol is now over. The priority now is for the Scottish Government to provide clarity on how the scheme will work in Scotland, and

£2.50

£11.25

Cider

White Cider

(1-ltr / 5% ABV)

(3-ltr / 7.5% ABV)

to allow a fair timeframe to give businesses the opportunity to prepare. The SRC wants to work with the Scottish Government to ensure the best system possible is put into place for retailers and consumers. We believe that will require both a reasonable implementation period, of at least six months, and clear guidance so retailers understand exactly how they can effectively implement the policy.”

Your licence is your livelihood Make sure you speak to the experts We provide licensing and legal advice to convenience retailers across Scotland. Working closely with the Scottish Grocers Federation, we represent and offer commercial legal advice to multiples, independents and family businesses. At TLT we live and breathe licensing and understand the importance of retailers to local communities.

To find out more, contact Stephen McGowan on 0333 006 1203 or Stephen.McGowan@TLTsolicitors.com

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DECEMBER 2017 | SLR

06/12/2017 09:27:51

Inside Business

SGF Conference 2017 Review

99 NOT OUT!

Last month saw the Scottish Grocers’ Federation host its 99th annual conference with a packed audience and a full agenda. SLR was there see the industry gather. BY ANTONY BEGLEY

Spar Renfrew reailer Saleem Sadiq tries Scottish World Champion Wheelchair racer Samantha Kinghorn’s medals for size.

ith just months to go until the Scottish Grocers’ Federation’s landmark centenary year, the annual SGF conference provided the perfect opportunity for representatives from right across the local retailing industry to gather and take stock of what is an increasingly fast-paced sector. Indeed, the theme of this year’s Conference was ‘Reformulation’ – in its widest possible sense. Hosted between RBS’s global HQ in Gogarburn and the plush Balmoral Hotel on Princes Street in Edinburgh, the event drew a packed audience from every corner of the sector including retailers, wholesalers, suppliers and industry bodies. The format was familiar to regular attendees with a blend of on-stage presentations, exhibition space, focused breakout sessions and a gala dinner at The Balmoral. The opening day saw the Scottish Government’s Head of Health Improvement Daniel Kleinberg present the Government’s position on the challenges it sees ahead in tackling obesity and unhealthy eating among Scots, and the role that the Government anticipates local retailers, wholesalers and suppliers playing in joining that battle. Suppliers Charles Morrish of Muller Milk & Ingredients and Andy Topham of AB-InBev then outlined the improvements that their 32

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businesses are making to help introduce an extended range of healthier products, backed by very significant investment. The clear message was that this is an industry-wide challenge that will require all stakeholders to work together to find workable solutions. A retailer panel followed with Chris Gallacher of Scotfresh, Dan Brown of Giacopazzi’s Kinross and Mark Robinson of Robinson & Morrison on Shetland discuss the morning’s presentations and take questions from the audience. Lunch and another wander around the exhibition area was followed by a series of four breakout sessions hosted by Camelot, Mars, Paterson Arran and the Tobacco Manufacturers Alliance before it was off to The Balmoral for dinner. A lively evening was capped by a fascinating and highly emotional presentation from Scottish World Champion Wheelchair Racer Samantha Kinghorn who held the audience in awed silence with tales of the horrific accident that saw her lose the use of her legs but how she fought back to become one of the most successful athletes in Scottish history. The following morning saw the audience return to Gogarburn for a morning of presentations from a big-hitting list of speakers including: Fergus Ewing MSP, Cabinet Secretary for the Rural Economy & Connectivity; Daniel Johnson MSP; David Mundell MP; Secretary of State for Scotland; and Sir Tom Farmer. Ewing announced a £250,000 fund to help local retailers in Scotland enhance their food to go operations while Daniel Johnson outlined his plans to drive new legislation offering far greater protection for shopworkers against violence and intimidation. The calibre of speaker at the event reflects the esteem and regard in which the SGF is held in the corridors of power these days and bodes well for the future of our industry and for having our voices heard at the top table. The event also served to set the tone for the Federation’s historic centenary conference next year and plans are already underway for an extra special Conference. It should be one not to miss.

Delegates sharing tips and information.

The exhibition space was popular once more.

SGF Chief Executive Pete Cheema on stage.

Relaxing with friends at The Balmoral after a busy business session.

www.slrmag.co.uk

06/12/2017 09:27:58

SGF Conference 2017 Review

Retailers busy sharing their experiences.

The first day speakers cosy up for a team photo.

Inside Business

The event attracted a large audience again.

Day two speakers included Fergus Ewing MSP (2nd left), Sir Tom Farmer (3rd right) and Daniel Johnson MSP (right).

SGF Chief Executive Pete Cheema (left) and President Dennis Williams (right) are up for the cup with Interim Scotland Manager Malky Mackay and Bep Dhaliwal of Mars.

Interim Scotland Manager Malky Mackay in discussion with day one chairman Antony Begley.

www.slrmag.co.uk

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Scottish wheelchair athlete Samantha Kinghorn left barely a dry eye in the room with her inspirational presentation.

There was lots for retailers to discuss after another energising event.

The breakout sessions tackled a range of important topics.

DECEMBER 2017 | SLR

06/12/2017 09:28:12

SEWLARRDS

2017

WWW.SLRAWARDS.COM SLR December 2017.indd 34

06/12/2017 09:28:16

MAHMOOD TAKES IT ALL IN AT NACS IN CHICAGO! Scottish Local Retailer of the Year Mahmood Saleem visited NACS in Chicago last month as part of his Reward for being crowned the nation’s top retailer. SLR caught up with him on his return to find out how his trip went. The SLR Rewards are unique in the UK convenience industry awards calendar in providing every winner with a fantastic Reward for their success – but the Rewards don’t come any bigger than the one handed out to the Scottish Local Retailer of the Year: a trip to NACS in the US to visit the world’s largest convenience and forecourt conference. This year’s event was held last month in Chicago and reigning Scottish Local Retailer of the Year, Mahmood Saleem, duly jetted across the Atlantic to enjoy a spectacular five-day trip and take in the very best the US industry has to offer. It provided a unique opportunity for Mahmood, who runs the truly outstanding Ardeer Services forecourt business in Stevenston in Ayrshire, to experience a whole new world of retailing while enjoying a packed agenda of talks, exhibitions, networking and store visits. “It was an absolutely fantastic trip to Chicago to be able to attend the NACS conference. I can’t thank SLR and category sponsor JTI enough for making it possible,” says Mahmood. “It’s one of those things that I would never have gotten around to otherwise, and I certainly learned a lot and brought back some new great ideas. The trip also got me excited and passionate about what I could do with my business.” Mahmood says he particularly enjoyed the many education and workshop

sessions but, with a special interest in forecourts, it was the chance to meet so many other people involved in the forecourt industry that really made the trip special for him. He explains: “It’s a huge event so I had the chance to meet lots of exhibitors from the food and fuel industries. I met so many people and had the chance to share lots of experiences and discover new ideas.” Mahmood reckons he met people from over 70 different nations, and had his eyes opened to how retailers in other countries and cultures are developing their businesses. “I also had the chance to make a lot of new friends, and it wasn’t all about work,” he laughs. “But I was hugely impressed by how NACS managed to host such an amazing event with so many independent and chain store members.” The big budget event also featured a range of top notch speakers, something that also helped inspire Mahmood and fill him with enthusiasm for where to go next with his own business. He says: “I took a lot of inspiration from the many amazing speeches I had the chance to hear from the likes of Hall of Fame speaker and bestselling author Eric Chester; globally renowned business leader and author Chip Conley; NACS President and CEO

Henry Armour; and even TV and film celebrity William Shatner!” Mahmood says the conference really got him thinking about where the future might lie for forecourt and convenience retailing. He says: “NACS really fired me about what is coming down the line. One thing that was very clear from the conference was that in the next decade the number of electric vehicles we see on the forecourt will be rising dramatically. That will be a major challenge to overcome. I also learned that the forecourt industry really has to work harder and be more creative about finding ways of keeping its existing customers and finding new ones. Competition is only going to get stiffer, so we need to be smarter about running our businesses. “In my opinion the forecourt and convenience store sectors should start putting more thought into how to add fast, fresh and organic food to our stores, from serving fresh sandwiches to bakery, Kentucky Fried Chicken and freshly-made pizzas. I think we also need to focus much more on training our staff on to gain the knowledge of healthy food options and pass that to our customers.” It’s fair to say that Mahmood’s trip to NACS was a real eye-opener for him and at SLR we are delighted to be able to make trips like this possible.

WWW.SLRAWARDS.COM SLR December 2017.indd 35

06/12/2017 09:28:19

IT’S THE SLR REWARDS – BUT NOT AS YOU KNOW THEM! C

CMY

The SLR Rewards is the most Rewarding event in the industry calendar and it’s back for 2018 with a new venue, new Rewards and the chance to win a car on the evening itself! Don’t miss out on the event of the year.

Q NEW VENUE Q NEW REWARDS Q SOMEONE MUST WIN A CAR SLR December 2017.indd 36

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CATEGORIES Category Rewards

Beer Retailer of the Year Biscuits Retailer of the Year Confectionery Retailer of the Year Crisps & Snacks Retailer of the Year E-cigs Retailer of the Year Forecourt Retailer of the Year Newstrade Retailer of the Year Soft Drinks Retailer of the Year Spirits Retailer of the Year

Special Rewards

Best Refit of the Year New Store of the Year Community Involvement Retailer of the Year Food to Go Retailer of the Year Fresh & Chilled Retailer of the Year Responsible Retailer of the Year ThinkSmart Innovation Reward Team of the Year To download your full entry kit, visit www.slrawards.com or email events@55north.com

While the SLR Rewards are unique in the local retailing industry right across the UK in offering valuable, often money-can’t-buy Rewards for every category winner, we still feel it’s vital to keep freshening the awards programme up regularly – which is why we have decided to move venue for next year’s event, as well as moving up a gear when it comes to both the Rewards handed out and the format of the evening itself.

are justly rewarded for their amazing efforts throughout the year. Remember, no other awards programme in the UK offers every category winner a set of prizes that this year included a trip to NACS in Chicago. (You can find out how our current Scottish Local Retailer of the Year, Mahmood Saleem, got on while he was in Chicago on page 34.)

As a result, we will be moving to the plush Radisson Blu Hotel in Glasgow for next year’s event on June 20. The new venue offers us more space for some spectacular evening activities and a fresh new feel for what we are sure will be the highlight of the 2018 local retailing calendar in Scotland.

More great news is the fact that we will be giving away a car on the evening! A special raffle will be held on the evening, sponsored by Jet, and someone in the room on June 20 will collect the keys that evening! Any surplus funds from the raffle will be donated to a Scottish charity so we will be helping a great cause into the bargain.

We will also be taking a new approach to the Rewards for every winner and are currently working with our partners to build what will be a spectacular array of simply phenomenal Rewards to help ensure that the winners at next year’s event

Make sure you don’t miss out on the chance to be part of this festival of retail by entering as soon as possible. To register your interest or download the official entry kit and entry forms, simply visit www.slrawards.com or email events@55north.com

To enter, visit: www.slrwards.com Entry deadline: Friday 23rd March

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06/12/2017 09:28:19

Inside Business

Software Review | EPoS Pro The new app is effectively an on-the-go version of the main tillpoint unit, offering the same functionality.

The tillpoint base unit is built around an Android tablet, making it second-nature to use for anyone with a smartphone or tablet.

An array of easily customisable reporting and admin functions are available with a quick tap.

Amending product files and printing out fresh SELs takes seconds.

A quick-look dashboard offers instant insight into the most commonly sought data such as daily takings and profits.

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The unit seamlessly integrates Epos, card and contactless payments and PayPoint funtionality into one place.

www.slrmag.co.uk

06/12/2017 09:28:23

EPoS Pro | Software Review

Inside Business

PAYPOINT EPOS SYSTEM GETS SERIOUS

When it first launched a year ago, the PayPoint One Epos system was remarkable in how proficient it was from a company that had never made an Epos system. The latest Pro version takes the system to the next level, as SLR found out. BY ANTONY BEGLEY

hen PayPoint decided just over a year ago to launch its own Epos system there were one or two eyebrows raised across the industry. Why would a services provider get involved in such a competitive marketplace? And what did it know about making Epos systems? The answers quite quickly became clear, as our hugely positive software review in the November 2016 issue of SLR demonstrates. Not only was PayPoint One a decent Epos system, it was a damn good one. Built from the ground up using the very latest tabletbased Android technology, the system was quick and intuitive to use for retailers, it did all of the basics as well as most of its competitors and it neatly combined Epos, card payments, mobile payments and PayPoint services into a very compact unit. Having worked with an Epos system or three ourselves at Woodlands Local, we were intrigued to see how well the system functioned and the only weak point that we could find last year was the fact that the system wasn’t yet ready to accept regular pricing and promotion updates from the major wholesalers. That meant that adoption by retailers who were part of a symbol group was likely to be hindered severely. That problem has now been rectified with the latest iteration of the system, EPoS Pro. Not only that, a swathe of cool new functionality – including a game-changing mobile app – have taken the system onto an entirely new level and now makes it a genuine option for the majority of local retailers. As the only convenience trade title in the UK with a full working knowledge of Epos systems (through Woodlands Local), SLR was

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invited down to PayPoint’s HQ in Welwyn Garden City for a private in-depth demo of the system. The new and improved cloud-based system is, frankly, exceptional. The ease of use has been improved even further and anyone with a smartphone or tablet will instinctively be able to navigate their way around the entire system from the off. That perhaps explains why PayPoint has already placed over 6,700 PayPoint One systems in the marketplace, making it one of the most commonly-used systems in convenience within just 12 months. The new unit has the same small footprint at the till area and carries all the same functionality as the previous version, but it’s under the bonnet that things really get interesting. “Just like PayPoint One, the new EPoS Pro system has been developed in constant and close collaboration with independent retailers,” says PayPoint Group Marketing Manager Steve O’Neill. “We knew that for the system to be credible and attractive to retailers, it had to provide the sort of solution they would build if they were building an Epos system themselves. We believe we’ve

achieved that.” And it’s hard to disagree. EPoS Pro now offers wholesaler integration and connectivity, with Nisa integration already complete and more due to be announced as SLR went to press. Another great addition to EpoS Pro is a new mobile app that retailers can use to do pretty much anything they like on the system from the comfort of their couch at home – or anywhere else they can get online for that matter. The app is effectively a mobileoptimised version of the main unit and it works extremely well. PayPoint describes the app as ‘your store in your pocket’ and that pretty much sums it up. The app is available to download for free and, as well as allowing retailers to manage their stores remotely, the app is also mighty handy for in-store and cash and carry work too by using the smartphone’s camera as a scanner: checking stock levels, managing pricing, updating product files, scanning goods in and waste out, building orders, amending promotions and so on. The app can also be downloaded by as many staff members as required, negating the need for the (often expensive and clunky) handheld units that

PRICING Q EPoS Pro – £30 per week Q New customers to EPoS Core – £20 per week Q Upgrades to EPoS Core for existing customers – £15 per week Q Upgrades to base PayPoint unit – £10 per week Q Mobile app is free to all users

DECEMBER 2017 | SLR

06/12/2017 09:28:23

Inside Business

Software Review | EPoS Pro

The tagging functionality of the system offers almost limitless reporting and insight possibilities for retailers and streamlines a process that can be difﬁcult or impossible in many other solutions on the market. Other key functionality such as promotion management is similarly straightforward.

accompany some other Epos systems. News management functionality is also on the way too, which will be another great addition if it’s anything as easy to use as the other features. The reporting on EPoS Pro is another area that sets the system apart. A raft of reports is available at the tap of a screen, either on the unit itself or on the app. All reports are easily sortable to quickly and easily tailor them to the specific needs of the retailer. Want to sort your top 50 confectionery lines by volume sold last month? Tap, tap, done. Want to see that same list sorted by cash profit? Tap, tap, done. Prefer to see it by POR? Tap, tap, done. A seemingly small issue, but this avoids the need to do time-consuming exports of CSV files into Excel before the data can be easily sorted and processed – something that many Epos systems suffer from. The result is fast-paced, highly informed decision-making for the retailer – and it can all even be done using the app while standing in front of the confectionery fixture. The ‘tagging’ functionality is another area 40

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where the system really stands out. Basically, retailers can label any specific SKU with their own specific ‘tag’. This comes in exceptionally useful when retailers are routinely ordering from more than one wholesaler as no two wholesalers share the same product hierarchy and categorisation models. Some systems only run categorisation to, say, three levels (Soft Drinks > Carbonated Soft Drinks > Colas) while others only run to two (Soft Drinks > Carbonated Soft Drinks) and even then, wholesalers can often allocate a specific product to entirely different categories from each other. Consequently, running reports for the Colas sub-category in-store can be a complex and inaccurate task for retailers buying from more than one wholesaler and receiving data from more than one input. The EPoS Pro system operates on a basic two-level category basis but the tagging functionality opens up a whole new world of reporting accuracy and creativity. Retailers could, for instance, tag every product on their Christmas promo aisle end with the word ‘Christmas’ and could then run a specific

report just for that fixture to see how well the aisle end worked. Or they could, for instance, tag promotions by period – ‘Period 11’ – which quickly and easily allows them to run in-depth reports on the performance of every promotional product in Period 11. Or they could add a ‘local’ tag for every product sourced within 10 miles of the store. Running a report on the performance of locally sourced products then becomes a ‘tap, tap, done’ job, rather than a few hours of sifting through dozens of reports and manually highlighting local lines with a highlighter pen. Getting even more creative, retailers could choose, for example, to offer a 10% discount on locally-sourced products for the month of January. The ‘local’ tag allows the repricing to be done for every product with that tag in just a few seconds, as opposed to a few hours, and the system will even print off new shelf-edge labels from the tillpoint unit there and then. At just £30 per week, the EPoS Pro system is a seriously powerful tool and it’s one that will appeal to many local retailers. www.slrmag.co.uk

06/12/2017 09:28:26

#ThinkSmart2

#Th in kSma r t

Inside Business

19th March 2018, Glasgow Science Centre

The leading convenience tech, data and digital conference returns SLR’s ground-breaking tech, data, digital and customer engagement conference exclusively for the UK convenience retailing trade returns – and #ThinkSmart2 is set to be a must-attend event for forward-thinking local retailers.

hen SLR first launched its #ThinkSmart conference for the UK’s convenience retailers in 2014, the event was – and remains – the only tech, data, digital and customer engagement trade conference created exclusively for the local retailing community right across the UK. It was our strong conviction that instore technology, data capture and manipulation, digital communications and next generation customer engagement strategies would become core to the management of a modern convenience store. History has proven us to be correct on that front with new tech and customer engagement now in the front line for most progressive retailers. With that in mind, SLR has recently launched the follow-up #ThinkSmart2 event, once more held at the Glasgow Science Centre, a highly appropriate venue for a targeted conference like this. The event will attract retailers from across the UK. For once they will come to us, rather than the usual trips down south that Scottish retailers typically have to make to attend major events and learning forums. #ThinkSmart2 will once again offer an exciting, engaging experience mixing on-stage presentation, focused smaller format breakout streams and a ‘Test & Learn’ experiential chamber

where attendees will be able to get their hands on some of the latest tech available, from virtual reality store management software to the latest digital signage communications equipment, from next generation analytics solutions to in-store robotics. The event takes place on March 19, 2018 and we have already confirmed two fantastic speakers:

Tom Hall

Retail Analytics and Consulting Practice Team Leader, IRI Worldwide Tom Hall is a recognised global thought leader in the world of retail analytics and heads up the Retail Analytics and Consulting team at research and data giants IRI Worldwide. Tom has worked across the globe in both developed and developing markets dedicated to helping retailers and manufacturers optimise their price, media, promotion and ranging strategies. He has a wealth of experience and has specialised in rolling out data analytics to new markets, working on convenience business optimisation across Africa, Asia, the Americas and Europe. At the moment, Tom is driving the development of tailored business

optimisation packages for the UK convenience sector following the launch by IRI of a new ‘supermarketstyle’ analytics solution created specifically for the convenience sector. The solution offers local retailers the same insights the supermarkets have had access to for years.

Enda McShane

CEO, Velocity Worldwide Also confirmed is New York-based Irishman Enda McShane, CEO and founder of customer engagement gurus Velocity Worldwide. Enda will by flying across the Atlantic to discuss the role that customer engagement can – and must – play in modern convenience retailing. A renowned tech visionary, he will also discuss some ground-breaking work that Velocity is undertaking on both sides of the Atlantic, including some next generation huge scale projects in NFL stadiums across the US. The event is taking shape very nicely and is set to be true highlight of next year’s local retailing calendar. If you are interested in attending, exhibiting, speaking or wish to explore commercial opportunities, contact Antony at abegley@55north.com

Visit thinksmart.slrmag.co.uk for more information www.slrmag.co.uk

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DECEMBER 2017 | SLR

06/12/2017 09:28:26

MPos Developed by Retailers for Retailers

• Increase Margin by 3-5% Easy to Use • Pays for itself • Touch Screen Tills • • Stock / Wastage Control Automatic Ordering • Advance Reporting • • Shelf Edge Label Printing • Age Checking / Refusal Log VAT Maintenance • • Promotion Management • Grows your Business Links to All Major • Suppliers • Over 100,000 Products in Background File • The Most Advanced Epos System on the Market Also Available  *Chip & Pin Integration  *Wireless HHT *CCTV Integration  *Tobacco Vending  *Weighing Scale Link

0800 242 5360 or 07804 904 066 sales@mhousesolutions.com www.mhousesolutions.com SLR December 2017.indd 42

06/12/2017 09:28:27

Customer Engagement |#ThinkSmart2

# Thi n kSm ar t

Inside Business

Are local retailers ‘retail revolution ready’?

Capturing and leveraging customer data in real-time is key to growing sales and profits in today’s 24/7, ‘always on’ connected world, a challenge that local retailers must embrace to provide today’s and tomorrow’s customers with the shopping experience they will expect.

By Enda McShane

here’s no denying the massive shifts in the retail industry, but are retailers actually “retail revolution ready” to successfully engage with their customers? And no, “hello, welcome to the store” doesn’t count! Retail, like most industries, is undergoing a transformation – and that very much extends to convenience retailing. The shopping experience is no longer a linear one, where a customer enters a store, makes a purchase and leaves. It’s cyclical. Retailers need to be aware of these changes and adopt personalisation strategies to keep up with the way customers want to be treated. It’s easy to create successful customer engagement strategies if you have the right customer data in place. Retailers oftentimes get distracted by the next trending topic or gimmick, but the best ones are those that have the basic foundations locked down. In the retail world, there’s often two types of retailers: those that have data and don’t successfully use it, and those that have absolutely no data in place at all. Businesses that capture customer data, have engagement strategies in place and sustainable customer loyalty are rare to find — but not impossible to achieve. The retail industry is more dynamic than ever, from Amazon.com growing its bricks-and-mortar presence to Target teaming up with Pinterest in the US to offer visual search tools as part of its shopping experience. But there’s one thing all retailers have in common — they all must evolve their customer strategies to succeed in the next decade or run the risk of falling behind. A recent study of retail decision makers issued by Velocity Worldwide and Sapio Research found that while 30% of retailers struggle to maintain customer loyalty, 53% wait for customers to walk into or check out of the store before even engaging with them – that’s more than half of retailers that are missing prime engagement opportunities! Retailers have to understand the customer journey is a circular one. This means communication shouldn’t be isolated to one part of the journey or sale. Customer engagement needs

to occur at every single touchpoint, pre-store, in-store and post-store. We live in a 24/7 connected world, where real-time feedback, interactions and even instant coupons are expected. It’s shocking that only 35% of retailers analyse their data in real time. Many don’t even recognise this is a problem, and those retailers end up completely missing out when they don’t instantly act on their data insights. Not only does it improve overall customer experience, but it can help boost instant conversions and engagement. One of retailers’ biggest advantages is the ability to use their existing technologies in-store to capture valuable customer data to personalise the shopping experience. So how do retailers make data actionable? They must start using the actual data to build customer loyalty. Retailers need to shift focus to the most actionable customer data such as purchase history, shopping habits and customer feedback. Capturing and activating this type of data – at all stages of the shopper journey – is the key to a personalised, ongoing customer journey. After all, shopping and purchasing is cyclical, so why isn’t retailers’ data?

Enda McShane is the CEO of Velocity Worldwide, a leading customer engagement and personalisation technology provider. He will be speaking at SLR’s #ThinkSmart2 conference at the Glasgow Science Centre on March 19th 2018.

www.slrmag.co.uk

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DECEMBER 2017 | SLR

06/12/2017 09:28:27

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

P&H COLLAPSE SEES TROUBLED END TO A DIFFICULT MONTH The untimely demise of P&H added another significant challenge at Woodlands Local after another month of softer sales and continuing staff issues. BY ANTONY BEGLEY

SLR | DECEMBER 2017

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www.slrmag.co.uk

06/12/2017 09:28:28

Monthly Update | Woodlands Local

t never pays to get too carried away with your successes, as we’ve learned on many occasions at Woodlands Local. So the fact that November was a much tougher month for us after an excellent October should have come as no surprise. Footfall was in general slightly down every week of the month, probably down to a combination of Arctic weather conditions and the prospect of Christmas just around the corner. Footfall was down almost 4% on October, although basket spend was very slightly up. Similarly, total sales were down almost 3% with alcohol sales in particular suffering a poor month, down almost 5% on October and chilled food, perhaps unsurprisingly given the weather, being down almost 10%. The only highlights of the month were a solid hot food performance, again hardly a surprise in the cold weather, and tobacco up significantly, although partly driven by the budget hike in prices. So, all in all, not a particularly inspiring month at Woodlands, and that general malaise was exacerbated by losing another member of staff to B&M stores, something we could have really done without under the circumstances

– but the lure of permanent day shift proved too strong. So, it’s recruitment time once more and we already have a new start in place. We probably still need at least another two members for the team to get us back to full strength for the first time in six months.

P&H PROBLEMS Then, to round the month off in style, we received a text from Costcutter only hours after rumours of P&H’s demise started to circulate informing us that we wouldn’t be getting any deliveries from them for the rest of the week. While the collapse of P&H has massive implications for many, not least the 2,500 people losing their jobs a month before Christmas, the impact was being felt from day one in stores across Scotland and the rest of the UK, including Woodlands Local. We get all our fresh, chilled and frozen from Costcutter (delivered by P&H) so the tail end of the last week of November was spent in a flurry of activity trying to get our hands on large quantities of milk and chilled lines at very short notice. Thankfully, the industry seems to have rallied round and we managed

Inside Business

to get our local Booker to find us the milk we needed for the weekend as well as a substitute range of lines for the dairy and chiller cabinet. Costcutter has kept in touch throughout and expects to have plans in place very quickly to ensure deliveries continue but it’s clear that things are set to get worse before they get better. While it’s hardly Costcutter’s fault, it’s hard to see how this won’t affect their business, with many retailers across the country forced to deal with other suppliers and being tempted with the flood of offers of ‘support’ that have come in from other wholesalers. I can definitely confirm that Woodlands has never been contacted by so many reps in such a short space of time in all the years we’ve owned it!

DELAYS, DELAYS The result of all this unplanned upheaval has been a brief postponement of our strategy to re-range and re-lay the entire store. It’s frustrating as we wanted it in place in good time for Christmas – but it looks like it will be a delay of at least a couple of weeks now. In the meantime, and on a rare positive note, we have started our online training programme with Bolt Learning and all staff are beginning to work their way through our Phase I modules, although rollout of that programme has also been disrupted as the staff rota has had to be amended to cover for our new staffing shortages. Also taking up time at the moment is our Christmas assault. We’ve decided to go heavy on Christmas this year and have invested in a wide range of festive stock to create a little instore theatre and try to make Christmas great again. Historically, Christmas at Woodlands hasn’t been the sales fest that it apparently once was in convenience. We’re trying to remedy that by trying to encourage ‘every customer to pick one Christmas item every time they shop’. A bold goal, no doubt, but a mix of friendly up-selling, affordable Christmas treats at the till-point and an extensive range of value and mid-range confectionery and treats throughout the store and on a dedicated Christmas promotional end have already started bumping basket spend up – so the strategy is already beginning to have some effect. Whether it will be enough to make Christmas great again, only time will tell.

And the WOODLANDSlocal training programme is off and running... www.slrmag.co.uk

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DECEMBER 2017 | SLR

06/12/2017 09:28:29

Hotlines

Product News & Media Watch

Ben & Jerry’s Home Sweet Honeycomb Unilever This latest addition to its Classic range forms part of Ben & Jerry’s Together for Refugees campaign. The awareness-raising flavour combines sweet cream ice cream with a honey caramel swirl and chocolatey honeycomb chunks. The pack design incorporates a ‘Refugees Welcome’ sign. The new variant is available in 500ml packs, with an RSP of £5.49.

Roasted Garlic and Herb stuffing Mr. Crumb Irish stuffing manufacturer Mr. Crumb has rustled up a fresh Roasted Garlic and Herb variant in time for the festive season. The stuffing is available in 225g trays and has an RSP of around £2. It is suited to accompany a wide range of meat, fish and poultry dishes as well as vegetarian options. Promotional support for the launch is in the pipeline, but no details are available yet.

Sweet Characters Landmark Wholesale Landmark has added four new products to its Sweet Characters range of confectionery. The new sweets – Water Melon, Clear Cherry, Fizzy Bubble Gum Bottles and Teeth Lips – have a retail price of 5p each, and are manufactured in a Halal-accredited factory. Product packaging features a new label design with enhanced on-shelf standout.

SLR | DECEMBER 2017

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McVitie’s reveals its Christmas presence McVitie’s 2017 Christmas cake range sees the debut of a selection of festive-inspired cake products, all available now. With an estimated RSV of £2.5m for the whole seasonal range, all products feature striking seasonal packaging for maximum impact on shelf. Hobnobs Rudolph Red Nose Teacakes This new Christmas variant is available in packs of eight individually-wrapped teacakes. RSP is £1. Jaffa Jolly Santa Cake Bars The McVitie’s Jaffa Cake Bar has been given a jolly packaging makeover just in time for the festive season. These light sponge bars with a Santa red- coloured, orange-flavoured jam and a dark chocolate topping come individually-wrapped in packs of five, with a £1 RSP. Digestives Winter Orange and Chocolate Slices These Winter Orange and Chocolate slices cater to the popularity of chocolate orange flavours over the Christmas period and are available in a new festive packaging for an RSP of £1. Packs contain five individually-wrapped slices. Penguin Yule Logs The ever-popular Penguin Yule Logs are back for another year with a fun and festive look. At RSP £1, packs contain six individuallywrapped logs with chocolate sponge and vanilla flavoured cream covered in milk chocolate.

Princess Mallows Tangerine Confectionery Tangerine Confectionery has relaunched Princess Mallows in new packaging ahead of the festive season. The revitalised packaging has a much cleaner appearance designed to capture shoppers’ attentions. Made from natural colours and flavours, the range is available in classic packs of pink and white, or the new carton of classic pink and whites and chocolate covered minis.

Olivio Flavoured Oils Unilever Unilever has teamed up with Princes to launch two special edition Olivio Flavoured Oils. Both variants – Olivio Lemon & Thyme and Olivio Garlic & Rosemary – are available in 250ml bottles with an RSP of £1.50. The launch taps into growing consumer demand for flavoured oils, with the category currently growing at 28% yearon-year. Pack designs include visuals of key ingredients beneath the familiar Olivio flash.

Maltesers Ice Cream Tub SHS The newest member of the Mars Chocolate Drinks and Treats ice cream sharing tub family won’t be available until February 2018. With an RSP of £3, the new product features a blend of malt ice cream, Maltesers mini pips and chocolate. It will enjoy the support of a £5m brand investment for Maltesers in 2018, and looks to capitalise on the popularity of the tubs format, which accounts for 44% of ice cream sales.

www.slrmag.co.uk

06/12/2017 09:28:31

Product News & Media Watch Orange Smarties Mini Eggs Nestlé Available for the spring season, new Orange Smarties Mini Eggs (90g, RSP £1) combines the growth of the mini eggs format with an increasing consumer demand for Orange Smarties, as witnessed by the popularity of the Orange Smarties Giant Tube. A 300g family-sized sharing bag containing Smarties and Milkybar Mini Eggs will also be available, with an RSP of £3.

Pantene Micellar collection P&G

Jameson’s Rufﬂes Tangerine Confectionery Tangerine has extended the iconic Jameson’s brand with the launch of Jameson’s Peppermint Ruffles, a blend of peppermint and coconut fondant covered in rich dark chocolate and available in a 135g sharing bag (RSP £1) of individuallywrapped sweets. A Jameson’s gift carton is also launching in time for Christmas. This contains a mix of both Raspberry and Peppermint Ruffles. The 218g carton RSPs at £2.

Cadbury Rose Cake Bars Premier Foods

Pantene’s latest NPD brings the science of micellar water – a growing trend in skin care – to hair. The new Pantene Pro-V Micellar Cleanse and Nourish range is available now, and comprises a shampoo, conditioner and foam conditioner. All RSP at £2.99. The launch is in reponse to consumer insights, and Pantene is confident it will help increase growth not only for itself, but the category as a whole.

Premier Foods has extended its Cadbury Cakes festive range with the addition of new Cadbury Roses Cake Bars, which are based on the popular boxed chocolates of the same name. The new product is available now in Strawberry Dream and Orange Créme variants, and will stay in market beyond December. A pack of five individually-wrapped bars has an RSP of £1.69.

MEDIAwatch

Hotlines

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Paper for People Sofidel is refreshing its Regina brand with a new pan-European advertising campaign, ‘Paper for People’. The first ad – for Regina Wish – features an extremely wasteful husband learning to “only use what is needed” from his long-suffering wife. It airs across ITV, Channel 4, Sky media and a selection of digital terrestrial channels.

New Year, New Choices The start of 2018 will see Mars Chocolate launch a multichannel campaign supporting its permissible snacking options goodnessKNOWS and the Mars and Snickers protein bars. As well as TV, digital and out-ofhome advertising, exclusive workout videos will appear on the GiveMeSport website, promoting the protein bars.

Santa likes his cold Kellogg’s joined this year’s battle of the Christmas commercials by travelling to the North Pole to ask Mr and Mrs Claus how they eat their Corn Flakes. The TV ad, part of the brand’s #MyPerfectBowl campaign, reveals that Santa favours cold milk, which he embellishes with a sprinkle of orange zest and a dash of cinnamon.

The ad campaign, the Glenlivet Coconut vinegar hot sauce Buko Buko, a manufacturer of coconutbased products, has launched what it says is the world’s first hot sauce range based on coconut vinegar. The range includes Regular, Tangy and Fiery variants and is available in 150ml jars with an RSP of £3.99. The sauces are based on traditional recipes from the Philippines, where coconut vinegar is used extensively in dishes, and tap into a growing demand for Asian cuisine and the current coconut trend.

Nutri Soups New Covent Garden Soup Company The UK’s number one chilled soup brand has launched its latest new range: Nutri-Soups. The range is high in fibre, a source of protein and provides two of your ‘5 a day’. Three variants are available – Asian Souper Green, Chicken; Butternut & Barley; and Buckwheat & Bean Ribolitta. The launch is backed by a multi-channel campaign that includes TV, print, experiential sampling and PR activity.

The Glenlivet has launched its biggest-ever UK campaign in the run-up to Christmas to highlight the single malt’s credentials as ‘The’ whisky. Out-of-home activity will focus on train platform advertising in 350 locations. This will be backed in print with consecutive pages in every main broadsheet. Geotargeted digital content is also planned.

Président does it with pleasure Lactalis McLelland’s continental cheese brand Président has launched a new £1m digital marketing campaign, to inspire consumers with ways to slow down and enjoy the ‘French Good Life’. The campaign features digital and social media activity, including Facebook, Instagram, YouTube and Twitter, as well as video-on-demand on All4.

for all the latest product news, head to www.slrmag.co.uk/category/product-news/ www.slrmag.co.uk

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DECEMBER 2017 | SLR

06/12/2017 09:28:32

Feature

Whatâ&#x20AC;&#x2122;s In Store For 2018?

WHAT DOES 2018 HAVE IN STORE FOR THE LOCAL RETAILING SECTOR? After a challenging and dramatic year, 2018 looks set to be another year of change and evolution. SLR speaks to some leading industry players to find out what they think lies in store for 2018.

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www.slrmag.co.uk

06/12/2017 09:28:32

What’s In Store For 2018?

Feature

PAUL YATES

PETE CHEEMA

As we move into 2018, current market conditions are creating an environment where ambitious independent forecourt dealers can thrive – as long as they understand the changing needs of the consumer and deliver on those expectations. The current market also offers great opportunities for those fuel suppliers who are committed to helping their dealers thrive by consistently delivering on the fundamentals: competitive price, fuel quality, service and image. There is a huge emphasis at the moment on brand partnerships and forecourts becoming convenience destinations – and many are – but our research shows that 70% of consumers simply want to fuel quickly and efficiently. Offering consumers a bright and welcoming image, high-quality pumps and well-maintained forecourt facilities is vital. Being able to consistently offer a firstclass consumer experience is also key to developing customer loyalty – regardless of store size. Dealers understand their consumers and their local market better than anyone else, so we’re likely to see forward-thinkers gravitate towards fuel suppliers who deliver what they want.

The last few years have seen an unending stream of legislation on tobacco, e-cigarettes and alcohol. Retailers have shown how resilient they are by adapting to all of this and making things work in-store. The flow of legislation and regulation is unlikely to ease up in 2018. The Scottish Government will finally implement minimum unit pricing for alcohol and they have also signalled their intention to look at restrictions on the promotion of certain kinds of products. On a more positive note SGF has secured a £250,000 grant from the Scottish Government to help retailers respond to competition and customer demands through the introduction of Food to Go fixtures. SGF and the government will work together to shape the programme, which is likely to be launched in March 2018. The private members bill on protecting shopworkers, which we helped shape, and is being put forward for consultation by Daniel Johnson MSP, and could change the face of retailing forever if it goes through. I would urge retailers to respond to the consultation. Of course, 2018 is SGF’s centenary year and we have a full programme of events to celebrate this landmark.

CRAIG BROWN

GREG DEACON

For us, 2018 is set to be the year of capitalising on data to drive profitable growth, greater, more informed decision making to maximise space and range. Rationalising range to fit consumers’ shopping habits will be key, as will be using the consumer journey in convenience to give customers a range of products that are relevant to their shopping habits and requirements. We also see an extension of the ‘virtual’ range of products and services on offer with solutions like parcel collection advertised to increase footfall and drive new customers into convenience stores. Food to Go is predicted to overtake tobacco sales by 2022 so it will be crucial for retailers to review their options and have the component parts of Food to Go that fit their profile. Staying close to legislation will also be vital with so many changes coming in 2018. It will be crucial to communicate with colleagues and customers accurately and in a timely manner to minimise disruption and stay ahead of the curve. One thing is for sure though: 2018 will bring challenges, but it will also bring opportunities.

2018 is shaping up to be a pivotal year for the industry as we see suppliers shifting their focus to making better connections and relationships across the local retailing sector – benefiting brands and retailers alike. It’s good news for them, and it’s better news for consumers. Once again, there will be even more investment in digital channels as brands commit to connecting across a range of new, and some not so new, platforms – enabling them to build a contact strategy that suits retailers’ needs and that fits in with their busy lives. All of these traditional and new ways of working will ensure that brands are front of mind throughout the customer journey. Here at Camelot we’re investing in connecting relationships too as we pledge to commit £20m in retail initiatives designed to boost levels of engagement and improve in-store display, merchandising and game availability – all of which will help retailers to make the very most of having The National Lottery in their stores. In fact, our sales force is about to double just in time for the launch of these brand-new incentives to get retailers truly engaged with bringing The National Lottery back into growth.

REGIONAL ACCOUNTS MANAGER SCOTLAND, JET

RETAIL SALES DIRECTOR, JW FILSHILL

www.slrmag.co.uk

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CHIEF EXECUTIVE, SCOTTISH GROCERS’ FEDERATION

NATIONAL SALES MANAGER, CAMELOT

DECEMBER 2017 | SLR

06/12/2017 09:28:33

Feature

What’s In Store For 2018?

GERRY HOOPER, CEO, ZAPPER

James Lowman CHIEF EXECUTIVE, ASSOCIATION OF CONVENIENCE STORES

The local retailing community will face many challenges in 2018, not least hanging on to their loyal customers given the competitive nature of an ever-changing retail market. Adding value based on consumer desire, want and need has not changed so understanding consumers and their desires will be key to keeping them satisfied. It will be about more than just knowing your customer by name however, so embracing technology and not being afraid of change will benefit the forward thinkers. Creating the best possible environment for the consumer, being innovative, adding loyalty and value alongside technology, and a better, more precise way of communicating with consumers will be powerful, given what the larger groups are doing digitally. Therefore social media should be also be embraced to create ‘own retailer brand’ experiences! Finally, improving the process and speed at the point of purchase will also need to be explored, given consumers are time precious and constant queues will increase the likelihood of basket drop and losing custom to competitors. Mobile payment and self-scan will help to keep the queues at bay. 2018 will be a year of change, and technology will be at the forefront of these changes.

2018 will see consumer habits continue to change, and the rate of change is accelerating. Many of these changes play to the convenience sector’s strengths: little and often shopping, convenience in terms of location and getting things quickly, smaller households and smaller homes meaning less space and less planned weekly shopping. However, there are threats too. People may be less likely to cook a meal from scratch with ingredients bought from a large out of town store, but they’re more likely to eat out, so stores not offering Food to Go will miss out on this opportunity. Some of the reasons for these changes are down to rapid technological advances. Online grocery shopping has actually helped some convenience stores because that mode of shopping is complementary to top-up shopping from local stores. But short lead times and small minimum orders from operators like Amazon pose a new threat to convenience stores; for some people, this sort of online service is more convenient than the local shop. There are some great opportunities that technology brings our sector though, in terms of better targeted and more impactful marketing, or more efficient store

STEVE O’NEILL

DAVID LONSDALE

2018 will be a year of great opportunity for Scotland’s local retailing community. Across the UK, the convenience market is set to increase over the next five years and Scotland is no different, with the population turning their backs on the weekly shopping trip in favour of more frequent top-up shops. Maximising the value of convenience will be vital for retailers looking to capitalise on this trend and increase footfall and revenue. Over years of serving their local communities, convenience store owners have developed a rich understanding of their customers’ needs and in 2018, they will have the tools to understand the data behind their intuition and make more informed choices about their businesses. EPoS systems – including our own – will come to market, offering full front and back office functionality, including stock management, ordering, wholesaler links and news management. PayPoint One will continue to provide multiple ways to pay, helping retailers get the basics right and keeping customers happy. Harnessed properly, new technology can deliver a revolution in the local retail experience in Scotland in 2018. Retailers who embrace data stand to make the most of the opportunities out there.

“As we look ahead to 2018 it is worth noting there has rarely been a better time to be a shopper. Four years of falling shop prices has coincided with a technology revolution, with customers able to choose how they get their products, at the time and place that suits, at a price in real terms which has seldom been lower. “However, for Scotland’s retailers much of the data from 2017 – on retail sales, footfall and shop vacancies – has made for sober reading, against a backdrop of further shifts in shopping habits. This has been compounded by further falls in the numbers of shops and retail jobs. “Our economy lives or dies by what happens to consumer spending. That’s why SRC believes policy makers should be concerned about the formidable challenges for retail in the year ahead. Continuing inflation coupled with likely higher income tax, rising council tax and new minimum pension contributions are likely to put a strain on disposable incomes. “Retailers themselves will continue to grapple with a hotchpotch of government-imposed cost pressures, with further rises in business rates in the pipeline. Hopefully the implications of Brexit and plans for a deposit return scheme will become clearer.”

GROUP MARKETING DIRECTOR, PAYPOINT

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DIRECTOR, SCOTTISH RETAIL CONSORTIUM

www.slrmag.co.uk

06/12/2017 09:28:35

What’s In Store For 2018?

Feature

KATE SALMON

LAUREN GEORGE

I can’t remember the last time our industry moved into a new year without some sort of legislation hanging over us – I think everyone just expects it now – and 2018 is no exception. From the SWA’s perspective there are several issues that we are watching closely. However, it is the Scottish Government’s decision to introduce a deposit return scheme (DRS) that we are particularly concerned about. Michael Gove, the UK Secretary of State for Environment, Food and Rural Affairs, is also considering a similar scheme for England – adding weight to Scotland’s plans. We are working closely with the SGF and other groups who share our view that a DRS will be impractical and costly for consumers, businesses and local councils. So our priority is to continue to engage with the Scottish Government to try to develop a scheme which minimises the negative impacts on consumers, existing kerbside schemes and businesses. With Zero Waste Scotland currently looking at systems to see what works and what doesn’t, and the intention that ZWS will produce for the Scottish Government a DRS paper for public consultation, there is still time to voice our concerns. A collaborative approach provides us with the best chance to make our concerns heard loud and clear.

The past year has been another strong one for the confectionery category, with Mars Chocolate UK having five out of the top 10 chocolate brands. Across the category, bitesize and sharing formats continue to perform well as consumers are favouring Treat Bags and Pouches, and Mars has been driving this growth with Mars sales up to a 46.1% share of the category. Mars Chocolate UK has seven of the top 10 bitesize lines, including Maltesers, which is proud to be the UK’s number one Bitesize brand . Additionally, with the festive season in full flow and Easter on the horizon, retailers should ensure they are fully-stocked with treating and gifting chocolate to maximise the sales opportunity this seasonal time of year brings. Sharing blocks have also grown by 2.0% across the category and Galaxy, the number two chocolate brand in the UK, is well equipped to thrive in this area with a strong large block and bitesize portfolio driven by new product development and £218m in sales and growth of +1.3% . Aside from capitalising on the rise of the sharing trend, this year also saw Mars Chocolate UK’s biggest brand launch for 20 years, goodnessKNOWS, which fits in perfectly with people’s busy lifestyles and looks set to drive the category forward in 2018.

ABDUL MAJID

ANTONY BEGLEY

We seem to say it every year, but I firmly believe 2018 will be another tumultuous year for Scottish retailers. With the Booker-Tesco merger/ takeover and the Co-op takeover of Nisa taking place during the year, not to mention the collapse of P&H, we will see a major change in all retailer fortunes. Booker and Nisa retailers will finally see if their retail dreams have come true – or turned into nightmares. But it’s important no to forget that these mergers will impact the entire Scottish local retailing trade as the cash and carries and the other wholesalers fight to hold onto their retail business in the face of ever bigger competitors. In politics, thanks to the work of the SGF and Daniel Johnson MSP, we could see the law changed to protect retail workers. Some sort of protection is long overdue, I think all local retailers would agree. However, the dark cloud that is the Deposit Return Scheme also looms in the background. As the saying goes, change can be scary but you know what’s scarier: allowing fear to stop you from growing, evolving and progressing. Happy New Year to all of my industry colleagues when it comes.

Well, 2018, I think you’ll find that 2017 was a hard act to follow. In 20 odd years of covering local retailing I’ve never seen a year like the one that’s drawing to a close, leaving us with huge single use bag of imponderables to consider for the year ahead. What will Tesco-Booker’s new stranglehold on the industry mean for everyone outside the tent, as well as everyone sitting inside it? What will the Co-op do with its new found place at the top table of independent retailing? Who will mop up the £4bn of sales that P&H won’t be bagging any longer? It will be riveting to watch all of this play out over the next 12 months and there are sure to be a lot of winners – and possibly a lot more losers – along the way. That aside, I believe that 2018 will be the year when the industry really starts to get to grips with technology and data – and not before time. As the next generation of customers comes through, their expectations from the shopping expereince will be radically different from even a few years ago and we need to be ready to deliver the experience they seek. If we don’t deliver that experience, there are plenty who will be only too happy to step in and do it. But a new year brings a new set of opportunities; the key is to be alert to them and to have the courage to embrace them.

EXECUTIVE DIRECTOR, SCOTTISH WHOLESALE ASSOCIATION

NISA LOCAL BELLSHILL

www.slrmag.co.uk

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BRAND AND TRADE PR MANAGER – MARS CHOCOLATE UK

PUBLISHING DIRECTOR, SLR

DECEMBER 2017 | SLR

06/12/2017 09:28:36

JET

THE fuel brand of independent Scottish dealers

From Dumfries in the south to Thurso in the north, and from Kyle of Lochalsh in the west to Duns in the east, JET’s network of independent Scottish forecourts is going from strength to strength. In Scotland alone, we supply over 1 billion litres of fuel every year to independent dealers, other oil companies, hypermarkets, major resellers, and commercial and marine customers.

“

JET stands out as the retailer undercutting the non-supermarket sector by 1ppl on petrol and 2ppl on diesel. Source – Forecourt Trader, August 2017

”

* Source: Phillips 66 analysis based on Catalist’s latest price data.

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06/12/2017 09:28:38

More and more Scottish dealers are making JET their fuel supplier of choice and here’s why... • Security of supply: JET is Scotland’s only branded dealer supplier with its own UK refinery – our 11 billion litre Humber Refinery supplies 15% of the UK’s refined needs • Competitive supply price: Our competitive supply price meant that JET was the lowest priced nonhypermarket fuel brand in Scotland in 2016* • Compelling fuel card offering: Our two fuel card options help maximise dealer margins. Our JetCard provides lock-in for local businesses and Fleetone provides national coverage for use at 3,000+ UK locations

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• An award-winning standards and service programme: Our ‘Proud to be Jet’ standards and service programme rewards dealers who deliver high standards and offer excellent customer facilities • Big brand alliances: Our brand partnership with SPAR UK enables JET dealers to transform their sites into convenience destinations that maximise on both fuel and food sales • Retail support: Our compelling range of retail support services and partner offers help dealers to drive forecourt footfall and customer loyalty

JET is 100% committed to the future of fuel retailing in Scotland and the continued expansion of our dealer network. We’d love to talk to you about how we could help your business thrive now and into the future.

W jetlocal.co.uk E connect2jet@p66.com JourneywithJET @JETPetrol

• Consumer promotions: At no cost to our dealers, our innovative national and local promotions have been proven to drive up forecourt footfall and fuel volumes

06/12/2017 09:28:40

Feature

What’s In Store – Advertorial

HEALTHY PROFITS ARE IN THE BAG THE RIGHT RANGE Tea is increasing in popularity and its recognition as a healthy beverage has created opportunities to increase revenues, particularly of healthier teas like fruit and herbal, decaf and green. The interest in health is expected to continue in 2018 and the importance of food and drink as part of a healthier lifestyle is expected to grow. Attention to sugar and fat consumption and uptake of food and drink with added vitamins are anticipated core trends. Tea sits well with this agenda and having the right mix of teas is essential to maximise sales. Everyday black teas still dominate sales in convenience and account for 86.0% of overall tea sales compared to 78.6% in the wider market. If revenues from tea are to improve the over reliance on black tea needs to be addressed. It’s about achieving the right balance – retaining focus on the big sellers in core black, whilst offering a mix of products that capitalise on the growth opportunities.

THE RIGHT MIX OF TEA AND THE RIGHT BRANDS ARE KEY With tea brands are important to shoppers and the top brands account for 68.7% of all tea sales in convenience, so should be included in the mix. For the right mix of tea, growing interest in health makes an everyday black decaf option a must. Decaf drinkers won’t choose an alternative tea, so sales will be missed if a decaf option is not available. As the best54

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selling decaf in convenience with volume sales up 17.3% yoy, Tetley decaf is a good option here. Sales of fruit and herbal are up 1.2% in value in convenience and are expected to remain strong. Tetley is a strong innovator here and is the fastest growing brand in fruit and herbal. Tetley Super Fruit Blueberry and Raspberry is a strong contender in this sector. Green teas too remain popular. Tetley is the number two brand in green overall in the market, with Tetley Pure Green and Tetley Pure Green Lemon best sellers. In convenience Tetley Super Green Berry Burst with added vitamin B6 is a top six SKU in green. Functional food and drink is a trend worth watching in 2018. Bringing the first range of functional teas to market with added vitamins and EFSA approved health claims, the Tetley range of Super Teas offers something new to shoppers. The range has broad appeal across all ages and offers retailers a higher value sale with strong repeat purchase.

TOP 4 TEA BRANDS SCOTLAND 1. Tetley 40.35% 2. Scottish Blend 13.63% 3. Twinings 6.99% 4. Yorkshire 6.24% Volume % share AC Nielsen 7.10.17

TETLEY TOP TIPS Q The right layout on shelf can help improve product selection and purchase. Q Block brands and display teas in a logical sequence. Q Signpost different types of tea available and bring attention to anything new. Q Select the right pack size to meet different shopper missions. Q Use the right packs with Price Marks and Strike Through pricing to demonstrate value. Q These are most important in high volume Segments like every day teas and decaf where they help retailers demonstrate that they are offering value. Q Tap into shopper trends like healthy eating Bringing products together as part of a healthy eating drive can benefit sales of a range of products and create a platform to introduce something new like the Tetley Supers range.

www.slrmag.co.uk

06/12/2017 09:28:47

BOUGHT BY MORE HOUSEHOLDS THAN ANY OTHER TEA BRAND* SLR December 2017.indd 55

*Kantar 4.11.17

06/12/2017 09:28:55

Feature

What’s In Store – Advertorial

ENJOY THE TASTE OF SOMETHING BETTER

lu has expanded its portfolio of e-liquids, having introduced eight brand new flavours to the UK market this year. These enticing new flavours complement the existing range of five blu e-liquids, and will further enhance consumers’ blu vaping experience. The new flavours are available in 10ml bottles in both zero and 0.8% nicotine strength in: Tropic Tonic, Vanilla Crème, Peach Passion, Berry Swirl, Mint Chocolate and Green Apple. Caramel Café and Polar Mint will also be available in a nicotine strength of 1.6%. Each 10ml bottle has an RRP1 of £4.99. Sophie Hogg, Head of Next Generation Products, Imperial Tobacco comments: “We’re excited about further bolstering blu’s marketleading2 e-liquid portfolio with these new additions. The wide range of flavours and nicotine strengths on offer will ensure retailers are able to accommodate the individual shopper needs of vapers and dualists alike. With so many new delicious flavours it’s hard to pick a personal favourite, but as a coffee aficionado I must admit I have a soft spot for Caramel Café!” The new blu e-liquids include the following flavour profiles: Q Tropic Tonic: The taste of exotic Pacific Island-inspired flavours, including pineapple, mango and passionfruit. Q Vanilla Crème: Designed to be lightly aromatic with a smooth, 56

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creamy flavour of vanilla that’s neither too strong nor too sweet. Q Peach Passion: Deliciously fragrant and inspired by the fresh flavour of ripe peaches, with seasonal spices creating a spicy, subtle sweetness. Q Berry Swirl: A fruity flavour created with a fresh berry smoothie in mind and crafted with notes of strawberry, raspberry and blueberry. Q Mint Chocolate: The taste of cool mint complements the rich, decadent flavour of cocoa in a classic flavour pairing. Q Green Apple: A sweet-and-sour, tart and tangy flavour that recalls freshly-picked Granny Smith apples. Q Caramel Café: The perfect combination of warm indulgence with smooth buttery caramel, layered with fresh espresso. Q Polar Mint: A crisp and refreshing fusion of peppermint and spearmint to leave you feeling chilled all year-round. To find out more about stocking blu e-cigarettes and the new range of e-liquids, retailers should contact their designated Imperial Tobacco representative, or call 0800 0149 335. 1 For the avoidance of doubt, retailers are free at all times to determine the selling price of their products 2 Nielsen 52 w/e 12.08.17

www.slrmag.co.uk

06/12/2017 09:28:56

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06/12/2017 09:28:57

Feature

What’s In Store – Advertorial

QUORN GOING FOR GROWTH WITH SCOT SERVE

uorn, the delicious, nutritious protein source, will be more accessible to Scottish convenience retailers in 2018 thanks to a distribution partnership with Scot Serve, the leading food and drink sales consultancy. The partnership involves two full-time Quorn brand ambassadors calling on convenience retailers throughout Scotland to promote the benefits of stocking the UK’s best-selling chilled and frozen meat free brand*1 In addition, Scot Serve will advise on which Quorn products are best-suited to individual outlets looking to increase sales across the key shopper missions of food for now, food for later and food for tomorrow. “With Quorn driving category growth, the UK’s meat free sector is now valued at over £312 million*1 as shoppers increasingly look for great-tasting, nutritious, products that are made with more sustainable protein sources, such as Quorn, which can be used across a wide variety of meal and snacking occasions,” says Julian Cooke, Head of UK Category Management at Quorn. “We’re confident that our partnership with Scot Serve will accelerate Quorn’s growth in Scotland, enabling stockists to meet highest ever levels of shopper demand.” Quorn has much broader appeal than many retailers may realize as 80% of people who shop the meat free category are meat reducers*1. In addition, meat free shoppers spend up to five times as much in-store as nonmeat free shoppers.*2 A range of 10 Quorn products (5 x chilled and 5 x frozen) will be available to convenience retailers via Scot Serve. A core range of Quorn frozen products will be pricemarked at £2.29 and includes Quorn crispy nuggets, sausages, burgers, mince and Quorn pieces. Quorn’s chilled core range includes cottage pie & lasagne ready meals, vegetarian ham slices, sausages and burgers. Graeme Clark, Managing Director of Scot Serve, said Quorn could be used to attract shoppers to freezers and chilled fixtures. “Quorn is a high profile brand that’s on-trend, with competitive pricing and strong margins, and has a leading role to play in enabling convenience retailers to develop the best possible meat free offering. “What’s more, the breadth and versatility of the Quorn range means it can be used as a beacon 58

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brand across the store, merchandised in high traffic flow areas such as meal ingredients, ready meals and snacking.” Stuart Harrison, Senior Grocery Buyer at JW Filshill Ltd., echoed that sentiment, adding: “We’re absolutely delighted to be introducing Quorn to our chilled and frozen range. With more emphasis being placed on health and wellbeing, we believe that we have picked a perfect partner in Quorn.”

*1 IRI 14/10/2017 & Kantar Worldpanel 08/10/2017 – %2 week ending *2 Kantar Worldpanel 52 w/e 20th May 2017

www.slrmag.co.uk

06/12/2017 09:29:00

ISNâ&#x20AC;&#x2122;T IT TIME

YOU MADE A

delicious difference to your sales?

Stock the leading brand in a category growing at +12% YoY* * Source; *52we : IRI 14/10/2017 & Kantar Worldpanel 08/10/2017. Quorn Mince, Pieces and Nuggets are a healthy protein source. Protein contributes to the growth and maintenance of muscle mass.

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06/12/2017 09:29:00

What’s In Store – Advertorial

Feature

GOODNESS KNOWS IT’S GOING TO BE MASSIVE

his summer, Mars Chocolate UK launched goodnessKNOWS, a delicious new treat and the company’s biggest brand launch in the UK since CELEBRATIONS. Coming in four snackable squares crammed with fruit, whole nuts, rolled oats and dipped in dark chocolate, goodnessKNOWS is a tasty, high-quality and shareable treat that can be eaten all at once, or broken up through the day. goodnessKNOWS is available in three varieties: Cranberry & Almond, Blueberry & Almond and Apple, Peanut & Almond. It is made using the best quality ingredients, with no artificial colours, flavours or preservatives, creating a great-tasting treat under 160 calories. However, goodnessKNOWS isn’t just about tasting great, it’s also a treat with good intentions. The brand will channel 10% of all sales profits into the ‘goodnessKNOWS Fund’ that will support community projects and local initiatives, spreading a little goodness across communities in the UK. goodnessKNOWS is a perfect example of a new type of lifestyle product that is becoming increasingly desirable for consumers. As people’s lives have become busier, they are looking for snacks that are more convenient, and this snacking category is now worth £5bn and the third biggest shopping mission in store. goodnessKNOWS has been created to fit in with people’s busy lifestyles, however it is not just snacking on the go, consumers increasingly want products that match the values they live by. As well as being a great tasting treat, goodnessKNOWS provides the consumer with that little bit more – with a percentage of all proceeds going to help small community projects across the UK. Following the brand launch this summer, November saw

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goodnessKNOWS launch its first ever UK ad campaign. The advert is part of the brand’s ‘Done some bad? Do some good’ campaign and introduces Mr. Nasty, who causes chaos through a series of pranks – in an effort to be as nasty as possible! His maddening exploits are foiled when he decides to treat himself to a goodnessKNOWS bar, which donates 10% of of all sales profits to the ‘goodnessKNOWS Fund’. When he realises that he has unknowingly done some good by indulging in the treat, he angrily scrunches up his wrapper and storms ahead, ensuring that he plays one last prank – encouraging a car to reverse into a lamp post – and smiling as he walks away. The launch of a new product always generates buzz and excitement in consumers giving retailers an opportunity to boost their sales, and this effect is heightened by the fact that goodnessKNOWS is Mars Chocolate UK’s first new brand since CELEBRATIONS 20 years ago. With the release of the brand’s first advert in November, goodnessKNOWS is sure to be front of mind for consumers when they go in store so retailers should make sure the they have the product fully stocked and merchandised in key areas with high footfall. Retailers can further maximise their sales by grouping goodnessKNOWS with similar lifestyle products. For example, last year Mars Chocolate UK launched the MARS Protein Bar and the SNICKERS Protein Bar which capitalised on the trend of consumers snacking on food and drink that contains protein as a snack between meals. Consumers love in-store theatre and by creating a lifestyle category display with goodnessKNOWS and protein bars as well as other related items, retailers can signpost consumers to these increasingly popular products that fit into the lifestyle trend.

www.slrmag.co.uk

06/12/2017 09:29:01

Introducing goodnessKNOWS®. Each pack contains

4 delicious squares crafted with fruits and nuts, then dipped in dark chocolate.

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New goodnessKNOWS® comes in 3 delicious flavours: Cranberry & Almond, Blueberry & Almond and Apple, Peanut & Almond.

Stock up NOW!

Visit www.whatisgoodnessknows.co.uk for more information

06/12/2017 09:29:02

What’s In Store – Advertorial

Feature

FLEX INTO THE FUTURE

isa is the partner of choice for independent retailers, working tirelessly over the last 40 years to ensure it provides all the tools needed to compete against the increasing competition in the convenience retail sector. Retailers have the option to operate under a choice of symbol fascias; Nisa Local, Nisa Extra and dual branded whereby a member can maintain their local identity whilst also benefiting from the strength of the Nisa brand. Alternatively, retailers can opt to trade under their own independent fascia. Nisa offers flexibility to retailers with their Store of the Future Evolution format which is a move towards a more modular development format, accommodating the individual demographic and shopping missions of every store. A complete retail support package is offered, which comprises a strong retail focussed team, an enhanced category management system, a staff training facility and a comprehensive marketing package incorporating bespoke leaflets, point of sale material and national advertising. Nisa’s flexible model provides its retailers with an unbeatable breadth of range comprising over 13,000 SKUs. This is supported by Nisa’s

award-winning own label range, Heritage. This provides retailers with more than 800 great quality products at affordable prices and includes numerous award-winning lines such as the Heritage wine range launched in 2017. This commitment to value and quality also saw Nisa awarded Symbol Fresh Produce Retailer of the Year in 2016, affirming Nisa as the symbol group of choice for fresh produce. This is all delivered by Nisa’s industry leading supply chain which retailers can trust with an impressive 99.9% of deliveries made on the day and 95% successfully made on time. Nisa has its own insight team which allows retailers to truly understand their customers and their market place enabling them to modify their offer to match the ‘local’ demographic. Retailers can then use this insight in conjunction with Nisa’s category management service to create bespoke planograms and layouts within their individual sites. Through Nisa membership retailers can take advantage of the Retail Academy which provides a complete training solution to develop staff and help provide the best possible customer service. Nisa provides retailers with a comprehensive marketing package incorporating bespoke leaflets, allowing members to personalise

the leaflets to include local offers and events, and a personalised Nisa FM which provides a strong radio network for stores. Retailers are offered a full support structure to assist them continue to push their business forward. This comprises a strong field team covering retail development managers and regional retail managers, in addition to fresh food development managers, who encourage retailers to make the most of this important category, and store development managers who help to further develop stores. A quality EPOS solution, Epositive Evolution, is provided exclusively to Nisa members. With the ability to access promotions, stock lists and point of sale in a simple, touch-screen system it is a complete business management tool which can revolutionise the daily activity of retailers. And Nisa knows community involvement is key, and as such its retailers can support local good causes through Nisa’s Making a Difference Locally charity, which has donated over £7m to UK communities since its launch in 2008. The process to join the Nisa group is made as stress free as possible through the member website and the support retailers receive from the skilled in-house staff involved in the joining process.

COMPLETE THE FORM ON WWW.JOIN-NISA.CO.UK/CONTACT-US TO JOIN OR CONTACT OUR DEVELOPMENT TEAM ON 0800 542 7490.

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www.slrmag.co.uk

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O T D E T T I M M O C

S R E L I A T E R OUR SINCE 1977

“Nisa are world class when it comes to delivery. We’ve always enjoyed over 95% of deliveries arriving on time and in-full, so have never had issues with availability or stock. But when Nisa suggested that we switch to the new Nisa store of the future format we couldn’t have predicted what an impact it would have, it really has taken our business to the next level. The Nisa team remodelled the whole store to take advantage of extra space made possible by a reduction in size to our stock room. It was a big jump, but the move was made possible due to the reliability and frequency of Nisa’s deliveries, meaning we could easily work around the smaller stock room and maximise our selling space.

Nisa carefully worked out the range by identifying the main missions first, then location and category space. Only then was range selected. The promotions that Nisa provide are perfect for our customers and mean we can offer real value on the products our customers want to buy every day. The results have been a hit with the locals. The customers love what we’ve done here and they tell us that they feel the store is larger and more open than before, so we want to adopt the same format across our portfolio.”

Nisa’s phenomenal delivery service is unrivalled and better than we could ever have expected. Anish Keshwara, Nisa Local, Whittlesey

Join the family... visit www.join-nisa.co.uk SLR December 2017.indd 63 13859_NISA_TradePress_Anish Keshwara_2017_A4_AW01.indd 1

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Feature

Mints & Gums

BE BOLD WITH YOUR MINTYNESS! Mints and gums are highly impulsive purchases, but there’s more to merchandising them than just sticking them on the till point – the category needs planning, precision and constant revision.

he Mints and Gums category is one of the biggest opportunities to drive sales and profits in a convenience store. It is a large category with mints worth around £147m [Nielsen, Aug 16] and gum worth around £261m [ Nielsen, Jun 17] so it can really help you drive sales and in particular drive incremental impulse sales.

MINTS “Mints provide consumers with refreshment and give confidence, so they have very broad appeal,” says Susan Nash, Trade Communications Manager at Mondelez International. “Indeed, research shows that one in every two shoppers buy into the category and that customers expect to see mints in your stores [Kantar, Aug 2016].” The number one brand in the mint category is Trebor, with sales of over £50m [Nielsen, Aug 16]. The number one bestselling product is Trebor Extra strong, a product with a rich heritage, being first introduced in the 1950s. Nash says: “The Trebor range meets both consumer need states of refreshment and confidence through its range of extra strong, soft and sugar-free mints and it has the highest rate of sale of any mint brand. [Nielsen, Aug 16]. The key to success in selling mints, advise Nash, is visibility. Consumers expect to see mints by the counter area and she recommends that mints, where space allows, are sited in at least two locations: on the main confectionery fixture and in the hot zone (the area around the counter and front-of-store). Using manufacturers’ POS ensures the product stands out to really inspire purchase, and products should be neatly merchandised to help the shopper select what they are looking for. Pricing should be clear. Research also shows that having the latest NPD and products that are benefiting from media support will help drive your sales. Trebor launched its popular Softmints in a pot format this summer with the new convenient 100g packs available in both the peppermint and spearmint variants. Nash explains: “With its larger format, the new pot has been created to allow consumers to easily enjoy the mints on-the-go, making it ideal for desktops at work, in a bag for the daily commute or in the car.” The pot format is now worth £4.5m in the mints category and growing at 230% [IRI, Jun 17] so the launch aims to help retailers drive further mint sales. Trebor has also expanded its range further with the launch of new Trebor Mighties in early 2017: a brand new, sugar-free mint that delivers a big refreshing hit of Trebor mintyness in a small pack. Available in two flavours, Mint and Berry Mint, Trebor Mighties delivers a continuous wave of cooling refreshment, meaning consumers can stay confident and fresher for longer. This is a sugar-free product and, as health conscious shoppers are increasingly looking for sugar-free options, Trebor Mighties will 64

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help to provide consumers with greater purchasing choice and drive incrementality for the category. The units are sold in a flexible shelf-ready outer with hooks, meaning the packs can be sited anywhere in store for maximum stand-out.

GUM When it comes to gum, Wrigley is the clear market leader, accounting for £246m of the total £261m market. The future is sugar-free, according to Alison Owen, Refresh Portfolio Director at Wrigley UK. She says: “Growth is being driven by sugar-free gum and Wrigley expects this to continue as chewers seek out a healthy addition to their day-to-day oral care routine. Worth over £204m [Nielsen, Jun 17], Extra sugar-free gum is the driving force behind the gum category, which is growing in volume sales.” Extra’s core flavours – Peppermint and Spearmint – are the topperforming variants and are worth over £130m [Nielsen, Jun 17]. Livening up the category, Wrigley unlocked brand-new consumption occasions and huge category growth potential across its sugar-free gum portfolios in August with the return of its innovative in-car gum holder, free of charge with selected purchased gum and mint bottles. After identifying in-car consumption as a clear growth opportunity, Wrigley developed a holder which is tailored to conveniently keep gum bottles front of mind. The formats in the offer include Extra Peppermint, Extra Spearmint (60pc), Extra White, Extra White Bubblemint, Extra Ice Peppermint and Extra Coolbreeze (46pc), alongside Airwaves Menthol & Eucalyptus (46pc) bottles and Doublemint Mints bottles (70pc). To support the launch, the brand has invested in digital and out-ofhome activity, including TV and online videos, bus stop promotion and satnav advertising, in addition to POS material.

MONDELEZ INTERNATIONAL’S TOP TIPS FOR DRIVING MINTS AND GUMS SALES: Q Stock the bestselling brands: Trebor is the no. 1 mint. Q Have a range of stock hard and soft mints in spearmint and peppermint and sugar free. Q Stock the latest supported NPD. Q Make the most of brand investment: have displays in store when the consumer is most aware of them. Q Utilise manufacturer POS to help product stand-out and help shoppers spot what they are looking for. Q Place mints in the main confectionery fixture and on the counter. Q Be fully stocked. Q Stock should be clearly priced.

www.slrmag.co.uk

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Iconic Brands

Feature

CASH IN ON THE ICONS OF CONVENIENCE

When it comes to running a profitable store, focusing on the iconic brands that do the business for you day in day out is a vital strategy.

lot of advice is handed out to retailers on the intricacies of running a profitable modern convenience store but when it comes right down to it, the basics of managing a store well are pretty simple. One of the most fundamental planks of a successful store strategy is getting the right range on the shelves – and that means focusing time, effort and shelf space to the biggest and most iconic brands in the business. These are the brands that customers know, trust and very often love – and ensuring that they are highly visible and always in stock is 66

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the first step to driving sales and profits. In Scotland, there are quite a few brands that fall into that category, but possibly the best-loved of all is Irn-Bru. The debate over whether Irn-Bru or Coca-Cola is bigger in Scotland has rumbled on for many a long year, muddied (on purpose) by the way that sales are recorded and collated, but whatever the answer is to that question, ‘your other national drink’ remains a standout brand in Scotland’s local retailing community. With annual sales of almost £80m in Scotland [IRI, Sep 2017], IrnBru lays claim to being the number one Scottish grocery brand [Kantar,

May 2016], accounting for almost 60% of flavoured carbonates’ sales in convenience [IRI, Sep 2017] and currently growing strongly at 10%. [IRI, Sep 2017]. That’s a lot of statistics in a single paragraph, but they all tell the same story: IrnBru is a must-stock par excellence. Ian Johnstone, Scotland Impulse Controller at AG Barr, recommends that retailers stock all three Irn-Bru variants as an increasing number of shoppers continue to look for a choice of regular, low and zero sugar products. He says: “Irn-Bru sugar-free is Scotland’s leading low calorie flavoured carbonate while recently-launched Irn-Bru Xtra provides the same great taste as Irn-Bru regular but with zero sugar. Irn-Bru Xtra has generated nearly www.slrmag.co.uk

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STRENGTHEN YOUR SALES CALL US ON 01236 852580 *Kantar Worldpanel, Value Sales, Take home non-alcohol brands, MAT to 22.05.16, Total Scotland SLR December 2017.indd 67

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Feature

Iconic Brands

£8m worth of additional sales for retailers in its first year [IRI, Sep 2017]. “In recent work with SLR retailers, the overwhelming message is that by giving the total Irn-Bru brand more prominence in your store, all three variants will benefit and drive your category sales.” To support that growth, Irn-Bru is being been backed by a heavyweight £5m brand investment throughout 2017 across a number of platforms, including national TV advertising, digital and social media. As well as continuing its partnership with the Scottish Challenge Cup and The Football League, Irn-Bru has strengthened its association with grass roots football by teaming up with Sky Sports’ flagship Saturday football programme, Soccer AM. “The marketing support is reinforcing Irn-Bru’s position as the brand one in every two Scots drinks most often, with research confirming that Irn-Bru makes 89% of Scots feel proud to be Scottish. [LVQ Ad Tracking],” says Johnstone. While not quite reaching the dizzying heights of Irn-Bru, AG Barr’s broader range of products have all established themselves as must-stocks in convenience in Scotland. With soft drinks being the second-highest bought category in Scottish convenience after newspapers [HIM, 2017], the AG Barr range is a great way to drive rate of sale as well as profits. The £44m Barr Family range is Scotland’s most popular range of flavours [IRI, Sep 2017], appealing to a wide consumer base, with 14 different flavours offering great value for money. The Barr brand has an important role to play on the soft drinks fixture, currently accounting for 13% of flavoured carbonate sales in convenience and growing strongly at 9% [IRI, Sep 2017]. Also firmly established is the Rockstar range of energy drinks from AG Barr. Energy is worth around £71m in Scottish convenience and accounts for nearly one in three soft drinks purchases [IRI, Sep 2017]. Within this, big can formats are driving this expansion at +13%, with flavoured variants continuing to show significant growth [IRI, Sep 2017]. Rockstar is currently growing at +14% in Scottish convenience and the top two flavoured big cans are Rockstar variants, in order – Punched Guava and Xdurance [IRI, Sep 2017]. Rockstar’s wide range of 11 flavours is also the biggest in the energy drinks category. On top of that, AG Barr’s Strathmore Scottish Spring Water range and its expanding Rubicon range are also now firm favourites in Scottish convenience with Rubicon Spring, launched in June last year, delivering over £1.6m of additional sales to Scottish retailers 68

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[IRI, Sep 2017]. That growth has been driven by a £5m brand investment throughout 2017, including national TV advertising, outdoor posters, social media and sampling. In the off-trade, the iconic product for Scots is surely Tennent’s Lager. After many years of being the biggest beer brand in Scotland by a mile, Tennent’s has recently secured its iconic status with the news that it is now Scotland’s favourite alcohol brand of any description, according to the latest Kantar data. Countless attempts by UK and global brands to make a dent in Tennent’s status have largely proved fruitless and the brand continues to be the number one must-stock brand in beer. The brand that Tennent’s knocked off the top of Kantar’s list, Glen’s Vodka, also has justifiable claims to icon status, and in our own Woodlands Local store, for instance, outsells its competitors in the vodkas category by a factor of 10 to one, a situation that is likely to be replicated in stores across the country. Perhaps less glamorous but possibly more traditional, Hamlyns of Scotland has earned itself a place in the hearts of consumers across Scotland over the years too. Alan Meikle, Managing Director, says: “We know that consumers like local, regional and nationally sourced products. At Hamlyns of Scotland, we have always promoted the fact that we’re the only major brand of Scottish Porridge Oats and Oatmeal that can claim to be 100% Scottish from field to mill to finished product.

“We work closely with a network of Scottish farmers, many of whom have supplied us for several generations. We believe it’s important to shout about this in our marketing, and we’ve just added a new section to our website focusing on one of our farmer suppliers, so our customers have a full understanding of where our oats come from.” Meikle highlights to local retailers that it’s critically important how they merchandise iconic Scottish brands in-store if they wish to maximise sales and profits. “The multiple retailers have been really clever at merchandising big Scottish brands over the past few years, with eye-catching displays of a wide variety of products, not just to increase sales, but also to show how their support for the Scottish economy through local suppliers,” he comments. “While space restrictions make it difficult for smaller stores to do something on that scale, it’s definitely worth having occasional Scottish displays around key dates like Burns Night and St Andrew’s Day. For the rest of the year Scottish products can be highlighted with Scottish saltire-branded shelf tickets. Where retailers have space, engaging suppliers in sampling activities can really help to encourage trial and purchase of iconic Scottish products.” Remember however that there are regional differences even within Scotland. Hamlyns Scottish Oatmeal may be Scotland’s bestselling oatmeal by far, and Hamlyns Scottish Porridge Oats may be one of the fastestgrowing brands in the competitive hot cereals market, but regional differences make choosing the right range for your store an important task. Meikle explains: “Oatmeal sales are particularly strong north of Perth, where a high number of consumers use oatmeal to make porridge, whereas in central and southern Scotland porridge oats are much more popular for porridge making, so space should be planned accordingly.” www.slrmag.co.uk

06/12/2017 09:29:08

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06/12/2017 09:29:09

UTC

BANANAS MIGHT DISAPPEAR... SAYS TRADE UNION

HOLY SAUSAGE ROLLERS

UTC loves Greggs. He’s not proud of it but it’s a fact. So he was fair tickled last month to see his favourite purveyor of savoury snacks getting into a spot of festive bother when it created an ad that featured the three wise man gathered around, not the baby Jesus, but a sausage roll. Unsurprisingly, the ad generated fury and righteous indignation on social media, presumably just as Greggs had hoped it would. A quick straw poll at SLR Towers revealed that most of the office thought Jesus was more of a Steak Bake man.

CLOSE ENOUGH...

While SLR’s resident curmudgeon wouldn’t readily admit to being a company man, any reason is good enough for him to try out a new beer – so when he saw a wee four-pack of 54 North in his local offie the other day, he felt justified in picking one up and bringing it to the offices – of SLR publisher 55 North. Despite his best attempts, office protocol prevented him from cracking one open at his desk at 10.30am. What’s the world coming to, he was heard to say. “When I was a cub reporter at the Herald....”[Yes, enough about that – Ed]

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To be fair, it’s not the sort of thing you expect to hear from a trade union, so when the GMB issued a warning that bananas were set to disappear, UTC sat up and took notice. It’s all to do with the emergence of a new species of the Fusarium Oxysporum pathogen, the auld yin explained to a rapt audience. GMB puts it all down to “lowpaid, large-scale monoculture” which is destroying worker health, the natural environment and local communities. The union says: “The system for the production and trade of dessert bananas is little more than a house of cards built on the shaky foundations of monoculture and genetic uniformity. This house of cards threatens to collapse at any moment.” UTC was mostly concerned about what the potential impact might be on foam bananas, a favourite treat of his.

NO HIPSTER KALETTES® FOR THE AULD YIN, NO SIREE

UTC is delighted that the hipster fad is all but dead and buried, except in some small corner of East London, so he was up in arms to see a press release the other day telling him “he’ll be eating Kalettes® this Christmas”. Unless Kalettes is a new name for turkey and all the trimmings, he bloody well wouldn’t, he assured the SLR team. Kalettes®, complete with a capital ‘K’ and a wee ®, are allegedly the latest ‘superfood’ and are a cross between kale and Brussels sprouts – two of UTC’s least favourite things. As a combo, the auld yin reckons they sound only slightly worse than the worst combo he’s tried since that unfortunate Fair Friday office party when, against his better judgment, he tried Bacardi and Vimto. Worst pint he ever drank.

www.slrmag.co.uk

06/12/2017 09:29:09

GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SC039255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

What are you doing to help grocery people who struggle to survive? Get involved and show that youâ&#x20AC;&#x2122;re not buying debt too. Call 01252 875925 or visit www.groceryaid.org.uk

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06/12/2017 09:29:10 03/05/2017 16:46

#Th in kSma r t

The UKâ&#x20AC;&#x2122;s leading tech, data, digital and loyalty conference for the convenience trade returns. 19th March, 2018 Glasgow Science Centre

To find out how to attend, contact events@55north.com To find out about sponsorship, exhibiting and speaking opportunities, contact Antony at abegley@55north.com

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